SteelMint’s daily steel billet index was assessed at INR 48,300/tonne (t) (- INR 400) exw-Raipur on 3 October, 2022.
The index moved down due to weak buying interest amid festive holidays which restricted spot trades and led to the fall in prices.
In addition, another factor behind the price correction was the decline in steel prices in the northern region, which forced suppliers to soften their offers today.
SteelMint recorded a total of 850 t of billet deals in Raipur today as against 2,050 t on 1 October.
With the decline in billet prices, the conversion spread of standalone furnaces in Raipur from sponge PDRI to billets fell by INR 300/t to INR 16,500/t today.
SteelMint’s daily price assessment of rebar and wire rod declined by INR 200/t and sponge iron fell by INR 100/t in Raipur today.
About 650 t of wire rod trades and around 500 t of rebar deals were recorded in today’s trading session.
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) – Three trades at INR 48,200-48,300/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 48,288/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Six offers reported in the trading window and considered as T2 inputs. The average price of these six was INR 48,350/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 48,319/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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