SteelMint’s billet index decreased marginally by INR 100/tonne (t) to INR 47,650/t exw-Raipur on 21 January, 2023.
Billets prices dropped due to sluggish steel demand and limited trade. It seems that there is low acceptance of higher offers and buyers have moved to the sidelines, waiting for prices to fall.
Transactions of around 900 t were recorded today in Raipur as against 1,150 t as reported on 20 January.
SteelMint’s daily price assessment for rebars has shown a maximum decrease of INR 300/t, while wire rods and sponge iron prices decreased by INR 200/t.
The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets increased by INR 100/t at INR 15,450/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) – Two trades at INR 47,600-47,700/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 47,633/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Twelve offers reported in the trading window and considered as T2 inputs. The average price of these twelve was INR 47,642/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 47,638/t, rounded to INR 47,650/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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