SteelMint's domestic billet index edges up on active trading at higher offers - 30 Dec

Steel billet prices has shown upward trend and prices of INR 46,500/tonne (t) (+INR 350) were recorded d-o-d exw-Raipur on 30 December, 2022.

SteelMint's daily index has risen due to strong buying at higher levels. Trade in semi-finished and finished steel has supported higher prices. Prices in the northern region rose today which has also given further push to active trades.

Billet transactions of around 2,850 t were recorded today in Raipur as against 100 t on 29 December.

SteelMint's daily price assessments for wire rod has shown maximum increase of INR 600/t, while rebar prices have decreased by INR 100/t. Sponge iron prices have decreased slightly by INR 50/t.

Raipur wire rod trades were recorded at 1,900 t today as against 950 t on 29 December and rebar trades of 2,500 t were recorded today against 700 t on 29 December.

The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets increased by INR 400/t d-o-d to INR 14,550/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 trade at INR 46,500-46,600/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 46,517/t which is given a 50% weightage in the final price calculation. Apart from these one trade of INR 46,600 recorded at 1:21 pm was excluded due to timing.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Seven offers reported in the trading window and considered as T2 inputs. The average price of these seven was INR 46,510/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 46,514/t, rounded to INR 46,500/t exw.

Click for detailed methodology

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