SteelMint’s daily steel billet index was assessed at INR 47,150/tonne (t) (+ INR 150/t) exw-Raipur on 6 September, 2022.
About 1,900 t of transactions were recorded today as against 3,050 t on 5 September.
The index recovered on positive trends during the first half today, with price recovery seen in the northern region. However, spot billet demand in Raipur remained slowed on higher offers. Ultimately offers edged down later in the day.
For the standalone billet producers, the conversion spread (margins) from sponge PDRI to billet in Raipur increased slightly by INR 300/t, d-o-d, to INR 14,500/t. This was due to the decline in sponge iron offers on increasing selling pressure with suppliers, while offers for billets rose today.
SteelMint’s daily price assessment for wire rods rose by INR 200/t and for rebar by INR 100/t, while sponge iron offers fell by INR 200/t in Raipur today.
About 1,100 t of transactions in wire rod were recorded today as against 600 t yesterday. Rebar trade volumes remained stable d-o-d, with around 1,400 t of deals being recorded in Raipur in today’s trading window.
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) – Six trades at INR 47,100-47,500/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 47,182/t which is given a 50% weightage in the final price calculation. Apart from this one trade of INR 47,100 recorded at 12:14 pm was excluded due to timing.
- Other Price Indicators – bids/offers/indicative (T2) – Twelve offers reported in the trading window and considered as T2 inputs. The average price of these twelve was INR 47,164/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 47,173/t, rounded to INR 47,150/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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