SteelMint’s billet index remains unchanged at INR 47,650/tonne (t) exw-Raipur on 23 January, 2023.
Billets prices remained unchanged amid moderate trading activity at same prices. Demand for semi-finished and finished long steel improved slightly today. There seems to be low acceptance of higher offers among buyers as the market is fluctuating.
Transactions of around 3,000 t were recorded today in Raipur as against 900 t as reported on 21 January.
SteelMint’s daily price assessments for rebar, wire rod and sponge iron remained unchanged.
850 t of wire rod trades in Raipur were recorded today, while 1,900 t of rebar trades were concluded.
The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets also remained stable at INR 15,450/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) – Three trades at INR 47,650-47,800/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 47,685/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Six offers reported in the trading window and considered as T2 inputs. The average price of these six was INR 47,658/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 47,672/t, rounded to INR 47,650/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
Leave a Reply