SteelMint’s daily steel billet index was assessed at INR 46,700/tonne (t) (- INR 50/t) exw-Raipur on 20 October, 2022. Lower bids and slow buying interest continued to weigh on prices.
Prices were on the lower side during the first half today. However, in the late hours some recovery in the northern region was witnessed which kept offers supported but buying interest remained low for billets.
The upcoming festive holidays are affecting buying interest in general, while purchases on an urgent basis were seen in the market. Spot deals of around 2,700 t were recorded today in Raipur as against 1,750 t on 19 October.
Stability in sponge prices and a slight correction in billet prices have reduced the conversion spread of standalone furnaces in Raipur. The spread from sponge PDRI to billet dropped by INR 50/t to INR 15,400/t.
SteelMint’s daily price assessments for rebar and sponge iron stay firm, while wire rod prices rose by INR 200/t today in Raipur.
About 3,000 t of wire rod deals were recorded in today’s trading session as against 800 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) – Six trades at INR 46,550-46,800/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 46,672/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Four offers reported in the trading window and considered as T2 inputs. The average price of these four was INR 46,750/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 46,711/t, rounded to INR 46,700/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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