SteelMint’s daily steel billet index was assessed at INR 46,600/tonne (t), up by INR 100 exw-Raipur today.
Although the index rose further, spot trades fell as buyers resisted higher offers due to dull sales on revised finished steel offers. According to sources, the slow offtake in finished steel products is caused by limited transportation options combined with less labour owing to holi celebrations.
SteelMint recorded a total of 1,600 t of billets in Raipur as against 1,500 t as reported on 6 March.
Rebars prices in Raipur inched down by INR 100/t. In a similar vein, sponge iron prices also inched down by INR 50/t. In contrast, prices of wire rods remained unchanged.
About 600 t of wire rods and 700 t of rebars deals were recorded in Raipur.
The conversion spread of standalone furnaces in Raipur from sponge iron (PDRI) to billets decreased by INR 100/t d-o-d and is currently assessed at INR 14,450/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 46,600/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 46,600/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Eight offers reported in the trading window and considered as T2 inputs. The average price of these eight was INR 46,614/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 46,607/t, rounded to INR 46,600/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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