SteelMint’s billet index decreased by INR 250/t d-o-d to INR 46,500/tonne (t) exw-Raipur on 7 March, 2023.
Billets prices decreased marginally amid moderate trading activity seen at lower price levels. Demand for semi-finished and finished long steel remained low due to the Holi festival. Also, there seems to be low acceptance for the higher offers among buyers as the market is fluctuating.
Transactions of around 1,500 t were recorded today in Raipur as against 1,960 t as reported on 6 March.
Wire rods, rebars, and sponge iron prices were stable in Raipur today.
The conversion spread of standalone furnaces in Raipur from sponge iron (PDRI) to billets decreased by INR 250/t d-o-d and is currently assessed at INR 14,300/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) – Four trades at INR 46,400-46,500/t were recorded during the 11:30 am to 4:00 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 46,487/t which is given a 50% weightage in the final price calculation.
- Other price indicators – bids/offers/indicative (T2) – Twelve offers were reported in the trading window and considered as T2 inputs. The average price of these twelve was INR 46,481/t and given a 50% weightage in the final price calculation.
The final price for billets exw-Raipur was at INR 46,484/t, rounded to INR 46,500/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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