SteelMint’s billet index inched up by INR 200/t d-o-d to INR 46,200/tonne (t) exw-Raipur on 4 March, 2023.
Billet prices inched up on higher offers. Trade in semi-finished and finished long steel remained moderate. Buyers are keen to watch market movements before concluding additional bookings at higher price levels.
Transactions of around 2,600 t were recorded today in Raipur as against 3,400 t on 3 March.
Wire rods prices increased by INR 100/t, while sponge iron and rebar prices remained stable today.
The conversion spread of standalone furnaces in Raipur from sponge iron (PDRI) to billets increased by INR 200/t d-o-d and is currently assessed at 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) – Two trades at INR 46,100-46,200/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 46,189/t which is given a 50% weightage in the final price calculation. Apart from these one trade of INR 46,200 recorded at 3:37 pm was excluded due to timing.
- Other Price Indicators – bids/offers/indicative (T2) – Thirteen offers reported in the trading window and considered as T2 inputs. The average price of these thirteen was INR 46,179/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 46,184/t, rounded to INR 46,200/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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