SteelMint’s billet index fell by INR 300/tonne (t) to INR 46,000/t exw-Raipur on 24 February, 2023.
The index dropped amid falling bids and limited bookings. Demand for semi-finished and finished long steel remained moderate today. The market in the north India was slow which further weighed on prices. Buyers have been reluctant to buy at higher prices due to fluctuating trends in the market.
Transactions of only 1,600 t were recorded today in Raipur as against 2,800 t on 23 February.
SteelMint’s daily price assessments for both rebar and wire rods in Raipur declined by INR 500/t d-o-d. Meanwhile, sponge iron prices in Raipur decreased by INR 450/t.
Around 600 t of trade in wire rods was reported in Raipur today.
The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets rose slightly to INR 14,400/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 46,000/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 46,000/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Seven offers reported in the trading window and considered as T2 inputs. The average price of these seven was INR 46,030/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 46,015/t, rounded to INR 46,000/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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