SteelMint’s billet index moved up marginally by INR 150/tonne (t) to INR 47,500/t exw-Raipur on 27 January, 2023.
The index rose on the back of strong buying at higher levels. Demand for semis and finished steel has also improved. Prices in the north region moved up further, resulting in acceptance of higher offers.
Transactions of 3,770 t were recorded today in Raipur as against 2,300 t reported on 25 January.
SteelMint’s daily price assessment for rebars increased slightly by INR 100/t while sponge iron prices edged up by INR 200/t. Prices of wire rods remained stable d-o-d.
Wire rods trades in Raipur were recorded at 2,200 t today as against 1,200 t on 25 January, while 2,400 t of rebars trades were recorded as against 1,200 t on 25 January.
The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets nudged lower by INR 50/t to INR 15,300/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) – Eight trades at INR 47,400-47,800/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 47,476/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Ten offers reported in the trading window and considered as T2 inputs. The average price of these ten was INR 47,578/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 47,502/t, rounded to INR 47,500/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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