India: SteelMint's billet index rises further on higher offers - 27 Dec

Steel billets prices increased to INR 46,450/tonne (t) ( +INR 850) d-o-d exw-Raipur on 27 December, 2022.

SteelMint's daily index rose tremendously as a result of increasing offers in the northern region market. Furthermore, recent reports of the Chhattisgarh Electricity Board raising power rates may have an impact on prices in future. There was limited buying in the market due to higher offers. This has also affected finished steel trades.

Billets transactions of around 2,500 t were recorded today in Raipur as against 5,300 t as reported on 26 December.

SteelMint's daily price assessments for wire rods showed maximum increase of INR 700/t, rebars increased by INR 500/t, while sponge iron prices increased by INR 300/t.

Raipur wire rods trades were recorded at 2,000 t today as against 4,400 t recorded on 26 December. On the other hand, rebars trades of 3,000 t were recorded today as against 5,300 t recorded on 26 December.

The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets increased by INR 550/t d-o-d to 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) - Five trades at INR 46,400-46,600/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 46,485/t which is given a 50% weightage in the final price calculation. Apart from these one trade of INR 46,300 recorded at 12:33 pm was excluded due to timing.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Nine offers reported in the trading window and considered as T2 inputs. The average price of these nine was INR 46,393/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 46,439/t, rounded to INR 46,450/t exw.

Click for detailed methodology

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