SteelMint’s billet index decreased at INR 48,200/tonne (t) (-INR 350) exw-Raipur on 17 January, 2023.
Billets prices declined on lower offers by sellers and moderate trading activity was observed. Due to the current uncertainties in prices buyers are wary of higher prices and hence there is less acceptance of higher offers which in turn helped in reducing the prices. In addition, the northern region market was slow in the second half, which contributed to the price decline.
Transactions of around 1,450 t were recorded today in Raipur as against 1,250 t as reported on 16 January.
SteelMint’s daily price assessments for wire rods and sponge iron showed the maximum decrease of INR 400/t while prices for rebars remained unchanged.
The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets has improved slightly by INR 50 at INR 15,650/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) – Three trades at INR 48,200-48,500/t was recorded during the 2:30 pm to 5:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 48,252/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Five offers reported in the trading window and considered as T2 inputs. The average price of these five was INR 48,167/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 48,210/t, rounded to INR 48,200/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
Leave a Reply