SteelMint’s daily steel billet index was assessed at INR 46,750/tonne (t) (- INR 250/t) exw-Raipur on 18 October, 2022.
The index remained down; recording a four-month low. Notably, the previous lowest of INR 46,600/t was recorded on 21 June, 2022.
Ongoing slow finished steel sales continued to weigh on semis prices in the major locations. However, a slight demand recovery was reported in the late hours today with price rise in the northern region. But the momentum of active demand is less likely to continue due to upcoming festivals.
Meanwhile, spot billets deals fell to around 2,500 t today in Raipur as against 4,100 t on 17 October.
With the constant fall in billets prices, the conversion spread of standalone furnaces in Raipur from sponge PDRI to billets fell by INR 250/t to INR 15,650/t.
SteelMint’s daily price assessment for wire rods and sponge iron stays firm, while rebars prices dropped by INR 200/t today in Raipur.
About 3,300 t of wire rods trades were recorded in today’s trading window as against 1,300 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) – Three trades at INR 46,700-46,800/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 46,730/t which is given a 50% weightage in the final price calculation. Apart from these one trade of INR 46,700 recorded at 5:34 pm was excluded due to timing.
- Other Price Indicators – bids/offers/indicative (T2) – Eight offers reported in the trading window and considered as T2 inputs. The average price of these eight was INR 46,760/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 46,745/t, rounded to INR 46,750/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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