SteelMint’s daily steel billet index was assessed at INR 41,200/tonne (t) (- INR 1,100/t) exw-Raipur on 16 November, 2022.
The index dipped on lower bids and supply-demand mispatch on account of poor finished steel sales.
Sources informed that, a majority of hot charging mills are actively selling billet in the spot market, which has created inbalances in the trade cycle, especially for semis products leading to a constant drop in offers and decline in spot billet trades. Trades were recorded for about 900 t today against 2,750 t on 15 November.
The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets plunged INR 650/t to INR 12,700/t today. The drop in billet offers weighed on margins.
SteelMint’s daily price assessment for wire rods plunged INR 700/t, while rebar prices fell by INR 400/t and sponge iron offers dropped by INR 400-500/t d-o-d.
About 1,250 t of rebar trades were recorded today as against 4,200 t yesterday. Also, 1,400 t of wire rod trades were heard today as against 9,000 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) – Three trades at INR 41,000-41,500/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 41,200/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Fourteen offers reported in the trading window and considered as T2 inputs. The average price of these fourteen was INR 41,200/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 41,200/t.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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