SteelMint’s billet index moved up marginally by INR 150/t to INR 46,400/tonne (t) exw-Raipur on 6 February, 2023.
Billet prices increased slightly on higher offers. Trade volumes in semi-finished and finished long steel remained low. Market movements in north India have had an impact on the current price trend. Buyers may choose to observe market movements before committing to additional bookings at higher price levels.
Transactions of around 2,260 t were recorded today in Raipur as against 1,500 t reported on 4 February.
SteelMint’s daily price assessment for rebar and wire rod remained stable. Sponge iron prices increased slightly by INR 50/t.
Wire rods trades in Raipur were recorded at 1,150 t and 1,800 t of rebar trades were reported today.
The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets remained flat at INR 14,650/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 46,300-46,500/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 46,344/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 46,480/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 46,412/t, rounded to INR 46,400/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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