SteelMint’s billet index rose by INR 350/tonne (t) to INR 48,500/t exw-Raipur on 14 January, 2023.
Prices increased on moderate buying activities. Trades in semi-finished and finished long steel regained momentum and positive price trends in the northern region kept sentiments upbeat in the Raipur market too.
Transactions of around 2,570 t were recorded today in Raipur as against 3,200 t on 13 January.
SteelMint’s daily price assessment for wire rods increased by INR 400/t. Meanwhile, sponge iron prices increased by INR 300/t, while rebar prices rose INR 200/t d-o-d.
The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets improved marginally by INR 50/t at INR 15,850/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 48,300-48,600/t were 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 48,492/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 48,542/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 48,517/t, rounded to INR 48,500/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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