SteelMint’s daily steel billet index was assessed at INR 45,500/tonne (t) (- INR 350) exw-Raipur on 2 November, 2022.
The index slumped further due to limited buying on account of weak finished steel sales and poor lifting of previously booked material by resellers for long products.
Spot billet trades fell to around 1,150 t today as against 2,380 t on 1 November.
A few buyers booked billets as per their needs, while due to sluggish trends, future bookings remained limited.
With the decline in billet prices, the conversion spread of standalone furnaces in Raipur from sponge PDRI to billets fell by INR 250/t to INR 14,500/t today.
SteelMint’s daily price assessment for wire rod plunged by INR 500/t, rebar by INR 300/t, while sponge iron declined by INR 100/t d-o-d.
About 1,100 t of rebar trades were recorded today as against 1,700 t yesterday and around 1,250 t of wire rod deals were recorded in Raipur today as against 1,500 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) – Four trades at INR 45,500-45,700/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 45,560/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Thirteen offers reported in the trading window and considered as T2 inputs. The average price of these thirteen was INR 45,470/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 45,515/t, rounded to INR 45,500/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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