SteelMint’s daily steel billet index was assessed at INR 41,000/tonne (t) (- INR 1,200/t) exw-Raipur on 23 November, 2022.
The index dropped further due to lower bids and on demand concerns in the spot market amid weak finished steel sales at prevailing offers.
A majority of participants are cautious about bulk purchases due to significant price corrections, SteelMint notes.
About 3,700 t of spot billet trades were recorded today as against 1,100 t on 22 November.
With a constant fall in billet prices, the conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets moved down by INR 300/t to INR 12,400/t today.
SteelMint’s daily price assessment for sponge iron and rebars fell by INR 900/t while wire rods prices declined by INR 1,100/t d-o-d.
About 800 t of rebars and 1,700 t of wire rods trades were recorded today, both stable d-o-d against 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) – Four trades at INR 41,000-41,100/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 41,006/t which is given a 50% weightage in the final price calculation. Apart from these one trade of INR 41,500 recorded at 1:19 pm was excluded due to timing.
- Other Price Indicators – bids/offers/indicative (T2) – Eight offers reported in the trading window and considered as T2 inputs. The average price of these eight was INR 41,042/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 41,024/t, rounded to INR 41,000/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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