SteelMint’s billet index moved up marginally by INR 50/tonne (t) to INR 45,100/t exw-Raipur on 13 February, 2023.
The index has moved up on the back of strong buying at high prices and improved demand for finished steel. Prices in the northern region have increased further, resulting in acceptance of high offers.
Transactions of 5,500 t were recorded today in Raipur as against 700 t reported on 11 February.
SteelMint’s daily price assessments for rebars and wire rods remain stable d-o-d. Meanwhile, sponge iron prices declined up to INR 350/t.
Around 5,500 t of wire rod trade and 3,100 t of rebar trade was recorded in Raipur today.
The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets remain unchanged d-o-d 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) – Five trades at INR 44,800-45,200/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 45,057/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Four offers reported in the trading window and considered as T2 inputs. The average price of these four was INR 45,150/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 45,104/t, rounded to INR 45,100/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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