SteelMint’s daily steel billet index was assessed at INR 46,350/tonne (t), up by INR 100/t exw-Raipur on 13 March, 2023.
About 3,600 t of transactions were recorded today as against 1,450 t on 11 March, 2023.
Prices stayed high as spot trades improved, which was followed by a brisk demand for finished products and rising steel prices.
Rebar prices in Raipur declined by INR 100/t, while sponge iron prices fell by INR 150/t. Wire rod prices, on the other hand, climbed up by INR 200/t on a d-o-d basis.
In Raipur, transactions for 1,500 t of wire rods and 1,300 t of rebars were recorded.
The conversion spread of standalone furnaces in Raipur from sponge iron (PDRI) to billets inched up by INR 50/t d-o-d and is currently assessed at INR 14,500/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) – Nine trades at INR 46,300-46,600/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 46,391/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Eight offers reported in the trading window and considered as T2 inputs. The average price of these eight was INR 46,336/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 46,364/t, rounded to INR 46,350/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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