SteelMint’s daily steel billet index was assessed at INR 48,000/tonne (t) (=), exw-Raipur, on 26 September, 2022.
Demand remained active in the Raipur market following higher steel prices in the northern region. Spot billet trades in Raipur rose over three-fold to 4,900 t today as against 1,800 t on 24 September.
With firm billet offers and a slight fall in sponge iron offers, the conversion spread of standalone furnaces in Raipur from sponge PDRI to billets slightly rose by INR 100/t to INR 16,200/t today.
SteelMint’s daily price assessment of wire rod and rebar remained unchanged, while sponge iron prices fell by INR 100/t in Raipur.
About 3,850 t of wire rod deals and around 2,900 t of rebar trades were recorded in Raipur today.
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) – Nine trades at INR 47,900-48,200/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 48,000/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Nine offers reported in the trading window and considered as T2 inputs. The average price of these nine was INR 48,029/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 48,015/t, rounded to INR 48,000/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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