SteelMint’s daily steel billet index was assessed at INR 48,300/tonne (t) (+ INR 50) exw-Raipur on 28 September, 2022.
The index rose slightly due to the increase in steel prices during the first half today. However, in the second half offers slowed down, while transaction volumes increased to about 3,940 t today as against 3,550 t on 27 September.
Buyers opted to wait and watch as offers rose since demand for finished steel products was constrained. A majority of buyers withheld bookings having placed sufficient orders yesterday.
SteelMint’s daily price assessment for rebar and wire rod remained stable even as sponge iron prices fell by INR 50/t in Raipur today.
About 1,850 t of trades in wire rod were recorded today as against 1,700 t yesterday. Also, 1,400 t of rebar deals were recorded in today’s trading as against 1,650 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) – Five trades at INR 48,200-48,450/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 48,236/t which is given a 50% weightage in the final price calculation. Apart from these two trades of INR 48,400 recorded at 1:00 pm & 1:11 pm respectively were excluded due to timing.
- Other Price Indicators – bids/offers/indicative (T2) – Seven offers reported in the trading window and considered as T2 inputs. The average price of these seven was INR 48,263/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 48,285/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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