SteelMint’s billet index rose marginally by INR 50/tonne (t) to INR 45,950/t exw-Raipur on 27 February, 2023.
The index moved up on the back of strong buying at higher prices and improved demand for semi-finished and finished steel. Prices in the north India increased further resulting in acceptance of high offers throughout the country.
Transactions of 2,200 t were recorded today in Raipur as against 1,300 t on 25 February.
SteelMint’s daily price assessment for rebar remained stable, while wire rod prices increased by INR 300/t d-o-d. Meanwhile, sponge iron prices inched up by INR 100/t.
Around 2,250 t of wire rod trades were reported in Raipur today.
The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets remained flat at INR 14,350/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) – Four trades at INR 45,900-46,000/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 45,924/t which is given a 50% weightage in the final price calculation. Apart from this one trade at INR 45,900/t was also recorded at 12:33 pm but was excluded due to timing.
- Other Price Indicators – bids/offers/indicative (T2) – Six offers reported in the trading window and considered as T2 inputs. The average price of these six was INR 45,807/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 45,925/t, rounded to INR 45,950/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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