SteelMint’s daily steel billet index was assessed at INR 44,900/tonne (t) (- INR 400) exw-Raipur on 4 November, 2022.
However, spot trade recovered and around 7,400 t of deals were recorded today compared to 1,220 t on 3 November.
The recovery in trade can be attributed to rising steel prices in the northern region, influencing buyers to take position who remained inactive in the last few days. Finished steel trading also improved d-o-d.
With the fall in billets and sponge iron prices, the conversion spread of standalone furnaces in Raipur from sponge PDRI to billets stood stable at INR 14,300/t.
SteelMint’s daily price assessment for wire rods, rebars and sponge iron fell by INR 400/t d-o-d today.
About 2,000 t of rebars deals were recorded today as against 550 t yesterday, and 2,300 t of wire rods were sold in Raipur as against 1,550 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) – Eleven trades at INR 44,700-45,000/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 44,885/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Nine offers reported in the trading window and considered as T2 inputs. The average price of these nine was INR 44,933/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 44,909/t, rounded to INR 44,900/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
.jpg)
Leave a Reply