The steel billets market witnessed positive trends today and prices rose by INR 650/t d-o-d to INR 47,300/t exw-Raipur on 11 January, 2023.
SteelMint’s daily index increased on healthy buying at higher price levels. Trade activities in the finished steel segment also increased. Prices in the northern region rose further keeping overall sentiments supported.
Billets transactions of around 5,895 t were recorded today in Raipur as against 3,120 t on 10 January.
SteelMint’s daily price assessment for rebar showed a maximum increase of INR 800/t, while wire rod prices increased by INR 600/t. In addition, sponge iron prices edged up by INR 150/t.
The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets increased by INR 500/t d-o-d to 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) – Nine trades at INR 47,100 – 47,600/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 47,350/t which is given a 50% weightage in the final price calculation. Apart from these one trade of INR 47,100 recorded at 12:44 pm was excluded due to timing.
- Other Price Indicators – bids/offers/indicative (T2) – Ten offers reported in the trading window and considered as T2 inputs. The average price of these ten was INR 47,267/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 47,309/t, rounded to INR 47,300/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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