SteelMint’s daily steel billet index was assessed at INR 47,250/tonne (t) (=) exw-Raipur on 8 September, 2022.
About 3,200 t of transactions were recorded today as against 4,300 t on 7 September.
The index remained stable as buyers resisted higher offers during the first half today. However, moderate finished steel demand and fall in prices in the northern region weighed on billet offers in the second half of the day.
With the slight rise in sponge iron prices, margins of standalone billet producers have narrowed down. The conversion spread (margins) from sponge PDRI to billets in Raipur dropped by INR 150/t d-o-d to INR 14,750/t.
SteelMint’s daily price assessment for rebars rose by INR 300/t, wire rods by INR 100/t and sponge iron by INR 100/t in Raipur today. About 1,500 t of wire rods transactions were recorded as against 6,500 t yesterday. Also, around 3,500 t of rebars were traded as against 4,600 t yesterday, in Raipur.
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 47,200-47,500/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 47,232/t which is given a 50% weightage in the final price calculation. Apart from this one trade of INR 47,200 recorded at 12:54 pm was excluded due to timing.
- Other Price Indicators – bids/offers/indicative (T2) – Thirteen offers reported in the trading window and considered as T2 inputs. The average price of these thirteen was INR 47,292/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 47,262/t, rounded to INR 47,250/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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