SteelMint’s daily steel billet index was assessed at INR 44,100/tonne (t) (-INR 350) exw-Raipur on 10 November, 2022.
With this significant drop in offers, the index reached close to previous record lows of INR 43,500/t, seen during the first week of January 2022.
Dull demand in finished steel products and ongoing sluggish trends continued to weigh on billet prices along with the significant decline in steel prices in the northern region. This has made buyers cautious and resulted in a drop in the spot billet trade to around 2,160 t today as against 2,300 t on 9 November.
The conversion spread of the standalone furnaces in Raipur from sponge PDRI to billets fell by INR 250/t to INR 14,000/t today propelled by the constant fall in billet prices.
SteelMint’s daily price assessment for wire rods fell by INR 400/t, rebar by INR 200/t and for sponge iron by INR 100/t, d-o-d in Raipur.
About 650 t of wire rod trades were reported today as against 2,450 t yesterday. Around 800 t of rebar deals were recorded in Raipur today as against 2,600 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) – Five trades at INR 44,000-44,300/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 44,096/t which is given a 50% weightage in the final price calculation. Apart from these one trade of INR 44,400 recorded at 12:30 pm was excluded due to timing.
- 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 44,094/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 44,095/t, rounded to INR 44,100/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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