SteelMint’s billet index falls slightly as festive mood affects finished steel sales – 16 Sept

SteelMint’s daily steel billet index was assessed at INR 47,950/tonne (t) (- INR 150/t) exw-Raipur on 16 September, 2022.

Spot billet transactions recorded about 2,976 t on 16 September as against 2,800 t on 15 September.

The index dropped marginally on account of limited demand for finished steel products, followed by a price fall in north India. The holiday mood in the market due to Vishwakarma Puja tomorrow led buyers to keep purchases on hold for a couple of days. Spot trades, as a result, was affected in key locations.

The conversion spread from sponge PDRI to billet for standalone producers rose further by INR 100/t to INR 15,500/t in Raipur today.

SteelMint’s daily price assessment for rebar declined by INR 200/t, wire rod by INR 100/t and sponge iron by INR 200/t in Raipur today.

About 750 t of transactions in wire rod were recorded today as against 650 t yesterday. Also, 700 t of trade in rebar was recorded as against 800 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) – Six trades at INR 47,900-48,000/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 47,980/t which is given a 50% weightage in the final price calculation. Apart from this one trade of INR 47,900 recorded at 5:41 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 47,944/t and given a 50% weightage in the final price calculation.

The final price for billet exw Raipur was at INR 47,962/t, rounded to INR 47,950/t exw.

Click for detailed methodology

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