India: SteelMint's billet index rises further on positive market trends - 17 Feb

SteelMint's billet index increased by INR 200/t to INR 46,750/tonne (t) exw-Raipur on 17 February, 2023.

The index showed an upward trend on active trades at high prices. Demand for semis remained strong while trade in finished long steel showed mixed trends. Prices in north India inched up today supporting the increase in billet prices across regions.

Transactions of around 3,400 t were recorded today in Raipur as against 2,800 t reported on 16 February.

Wire rod prices increased by INR 600/t, while sponge iron and rebar prices increased marginally by INR 100/t.

Around 2,500 t of wire rods were traded today in Raipur against 2,000 t yesterday. Also 1,700 t of rebar trade was recorded against 1,600 t yesterday.

The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets increased further by INR 100/t d-o-d to INR 14,850/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 46,700-46,800/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 46,785/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 46,730/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 46,758/t, rounded to INR 46,750/t exw.

Click for detailed methodology

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