SteelMint’s billet index decreased marginally by INR 150/tonne (t) to INR 47,350/t exw-Raipur on 25 January, 2023.
Billet prices dropped due to sluggish steel demand and limited trade. It seems that there is low acceptance of higher offers and buyers have moved to the sidelines, waiting for prices to fall.
Transactions of around 2,300 t were recorded today in Raipur as against 4,050 t on 24 January.
SteelMint’s daily price assessment for rebar showed a maximum decrease of INR 100/t, while wire rod and sponge iron prices remained stable.
About 1,200 t of wire rod deals in Raipur were recorded today as against 2,550 t on 24 January and 1,200 t of rebar deals were recorded as against 6,900 t yesterday.
The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets decreased by INR 100/t at INR 15,350/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) – Five trades at INR 47,300-47,700/t were recorded during the 2:30 pm to 5:30 pm of the SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 47,405/t which has been given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Ten offers were reported in the trading window and considered as T2 inputs. The average price of these 10 was INR 47,342/t and given 50% weightage in the final price calculation.
The final price for billet exw Raipur was INR 47,374/t, rounded to INR 47,350/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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