SteelMint’s daily steel billet index was assessed at INR 47,000/tonne (t) (- INR 250/t) exw-Raipur on 17 October, 2022.
The index dropped further as billet offers decreased on account of limited demand in finished steel products. Also, a sharp decline in prices in the northern regions has weighed on steel prices across regions.
Spot billets deals of around 4,100 t were recorded today in Raipur as against 1,500 t on 15 October.
With the fall in billets prices, the conversion spread of standalone furnaces in Raipur from sponge PDRI to billets inched lower by INR 100/t to INR 15,900/t today.
SteelMint’s daily price assessment for wire rods and rebars fell by INR 400/t, while sponge iron prices declined by INR 100-200/t today in Raipur.
Deals of about 1,700t of rebars and 1,300 t of wire rods 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) – Eight trades at INR 47,000-47,100/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 47,024/t which is given a 50% weightage in the final price calculation.
- 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 47,017/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 47,021/t, rounded to INR 47,000/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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