SteelMint’s daily steel billet index was assessed at INR 48,300/tonne (t) (- INR 250/t) exw-Raipur on 25 August, 2022.
About 4,350 t of transactions were recorded today as against 3,600 t on 24 August.
The index fell slightly, although spot trade volumes improved following firm buying interest for finished steel products as against yesterday. Billet producers are trying to keep prices high as the conversion spread remains low – assessed at INR 14,000/t from sponge PDRI to billet for standalone furnaces in Raipur.
SteelMint’s daily price assessment of rebar and wire rod fell by INR 200/t each, while sponge iron fell by INR 400/t in Raipur today.
About 3,350 t of transactions in wire rod were recorded in Raipur as against 3,200 t yesterday.
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 trades at INR 48,100-48,500/t were 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 48,221/t which is given a 50% weightage in the final price calculation. Apart from this one trade of INR 48,000 recorded at 12:56 pm was excluded due to timing.
- Other Price Indicators – bids/offers/indicative (T2) – Fourteen offers reported in the trading window and considered as T2 inputs. The average price of these fourteen was INR 48,345/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 48,283/t, rounded to INR 48,300/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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