SteelMint’s billet index increased to INR 45,000/tonne (t) ( +INR 400) d-o-d exw-Raipur on 24 December, 2022.
The index improved on the back of positive market sentiments and active trade. Furthermore, the northern area market has solidified further which has influenced the market’s increasing trend.
Billet transactions of around 1,100 t were recorded today in Raipur as against 7,420 t as reported on 23 December.
SteelMint’s daily price assessments for rebars have shown maximum increase of INR 600/t, wire rods prices increased by INR 500/t and sponge iron prices moved up by INR 450/t.
However, the conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets has decreased slightly by INR 50/t d-o-d to INR 13,800/t.
Rationale-
This index has been derived based on transactions, offers, bids and indicative price data sets. Transactions are considered as T1 and given a weightage of 50% whereas other data sets are considered as T2 and given a weightage of the balance 50%.
- Transactions (T1) – Four trades at INR 45,000-45,200/t was recorded during the 11:30 am to 3:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 45,000/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Six offers reported in the trading window and considered as T2 inputs. The average price of these six was INR 45,020/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 45,010/t, rounded to INR 45,000/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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