SteelMint’s daily steel billet index was assessed at INR 44,700/tonne (t) (- INR 200) exw-Raipur on 5 November, 2022.
Current offers are reaching a nearly five-month low level as similar offers were last recorded during the first half of June this year.
The index dropped further following lower bids and limited demand on account of the softening in steel prices in the northern region. Thus, a majority of buyers held fresh bookings and are waiting for improvement in finished steel sales before placing orders for raw materials. This led to a decline in spot billet trades to around 1,150 t today as against 7,400 t on 4 November.
With the fall in prices, the conversion spread of the standalone furnaces in Raipur from sponge PDRI to billets declined by INR 100/t to INR 14,200/t today.
SteelMint’s daily price assessment for wire rods fell by INR 200/t and for rebar by INR 100/t, while sponge iron offers remained stable d-o-d 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) – Four trades at INR 44,600-44,800/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 44,700/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 44,719/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 44,710/t, rounded to INR 44,700/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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