SteelMint’s daily steel billet index was assessed at INR 46,000/tonne (t) (- INR 250/t) exw-Raipur on 31 October, 2022.
The index dropped further to a three-month low as similar offers were recorded during mid-June. However, with the decline in offers spot trades improved, supported by price recovery in north India.
Spot billet trades increased to around 4,600 t today in Raipur as against 750 t on 29 October.
With the constant fall in billet prices, the conversion spread (from sponge PDRI to billets) of standalone furnaces in Raipur fell slightly by INR 50/t to INR 14,800/t.
SteelMint’s daily price assessment for rebar and wire rod fell by INR 300/t, while the assessment for sponge iron declined by INR 200/t today in Raipur.
About 2,250 t of rebar trades and around 1,900 t of wire rod deals were recorded in Raipur today.
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) – Seven trades at INR 45,900-46,300/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 46,022/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Eleven offers reported in the trading window and considered as T2 inputs. The average price of these eleven was INR 46,013/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 46,018/t, rounded to INR 46,000/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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