India: SteelMint's billet index improves further on active trades at higher offers - 16 Feb

SteelMint's billet index increases by INR 550/t to INR 46,550/tonne (t) exw-Raipur on 16 February, 2023.

The index improved on active trades at higher price levels. Demand for semis improved marginally. Prices in the north region remained strong and shown upward price movement.

Transactions of around 2,800 t were recorded today in Raipur as against 2,200 t reported on 15 February.

Rebars & Wire rod prices has shown maximum increase of INR 600/t, meanwhile Sponge iron prices inched up by INR 400/t.

Around 2,000 t of wire rods were traded today in Raipur against 3,400 t recorded yesterday. Also 1,600 t of rebar trade was recorded against 3,300 t yesterday.

The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets increased by INR 150/t d-o-d to INR 14750/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) - Three trades at INR 46,500-46,650/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 46,591/t which is given a 50% weightage in the final price calculation.
  
  
• 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 46,479/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 46,535/t, rounded to INR 46,550/t exw.

Click for detailed methodology

T1 - Trade, T2 - Offer/Bid/Indicative, *Normalized price as per methodology