SteelMint’s daily steel billet index rose to INR 44,300/tonne (t) (+INR 500/t) d-o-d exw-Raipur on 17 December, 2022.
The index further improved based on higher offers which is mainly influenced by an improved market sentiments in northern region. Moreover, demand for semis and finished steel has also improved which has supported the price rise.
Billets transactions of around 1,520 t recorded today in Raipur as against 4,800 t as reported on 16 December.
SteelMint’s daily price assessments for rebars increased by INR 100/t, while for wire rods it increased by INR 500/t. Meanwhile, for sponge iron prices it increased by INR 600/t d-o-d.
The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets decreased by INR 100/t d-o-d at INR 13,500/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 44,200-44,600/t were recorded during the 11:30 am to 3:30 pm SteelMint’s trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 44,318/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Fourteen offers were reported in the trading window and considered as T2 inputs. The average price of these fourteen was INR 44,325/t and given a 50% weightage in the final price calculation.
The final price for billets exw Raipur was at INR 44,322/t, rounded to INR 44,300/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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