SteelMint’s daily steel billet index was assessed at INR 44,300/tonne (t) (+ INR 50) exw-Raipur on 8 November, 2022.
The index rose slightly today after a continued downtrend over the last few days. Firm finished steel sales on lower offers supported billet demand. The price recovery was also due to rising prices in the northern region. Both these factors influenced buyers to book billets on prevailing offers and spot trades improved to around 4,300 t today as against 2,750 t on 7 November.
The conversion spread of the standalone furnaces in Raipur from sponge PDRI to billets increased by INR 200/t to INR 14,200/t today due to declining sponge iron prices.
SteelMint’s daily price assessment for rebar and sponge iron fell by INR 200/t, while the wire rod assessment remained stable d-o-d.
About 3,400 t of wire rod trades were reported today as against 3,200 t yesterday. Around 3,000 t of rebar deals were recorded in Raipur today as against 3,900 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) – Eight trades at INR 44,200-44,600/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 44,317/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 44,293/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 44,305/t, rounded to INR 44,300/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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