Steel billets prices saw positive trend and prices of INR 46,950/tonne (t) (+INR 450/-) were recorded d-o-d exw-Raipur on 31 December, 2022.
SteelMint’s daily index increased on good buying at higher levels. Trade activities in semis also remained stable. Prices in north region showed further increase resulting in acceptance at higher offers.
Billets transactions of around 3,200 t were recorded today in Raipur as against 2,850 t as reported on 30 December.
SteelMint’s daily price assessments for rebars showed maximum increase of INR 600/t, while wire rods prices increased by INR 500/t. In addition, sponge iron prices increased by INR 250/t.
The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets increased by INR 250/t d-o-d to INR 14,800/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 46,900-47,100/t was recorded during the 11:30 am to 3:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 46,966/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Nine offers reported in the trading window and considered as T2 inputs. The average price of these nine was INR 46,969/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 46,968/t, rounded to INR 46,950/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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