SteelMint’s daily steel billet index was assessed at INR 47,500/tonne (t) (+ INR 200/t) exw-Raipur on 22 October, 2022.
Prices in the northern region rose following which producers raised their offers for mahurat trading, which supported the index.
However, trade remained moderate at revised (higher) offers. Spot billet deals dropped to 2,000 t today in Raipur as against 2,450 t on 21 October.
With an increase in sponge iron and billet prices, the conversion spread (from sponge PDRI to billets) of standalone furnaces in Raipur stood stable at INR 15,500/t.
SteelMint’s daily price assessment for wire rods and sponge iron edged up by INR 200/t while that of rebars rose by INR 500/t today in Raipur.
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 47,300-47,500/t were recorded during the 11:30 am to 3:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 47,500/t which is given a 50% weightage in the final price calculation. Apart from these two trades of INR 47,600 respectively, recorded at 3:46 pm and 3:47 pm were 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 47,467/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 47,484/t, rounded to INR 47,500/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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