SteelMint’s daily steel billet index was assessed at INR 41,000/tonne (t) (+ INR 400/t) exw-Raipur on 26 November, 2022.
The index increased further following higher offers floated by the suppliers following the rally in prices in north India during the first half today. However, later on the decline in offers affected spot trades of billet as volumes narrowed down to around 2,350 t today as against 6,400 t on 25 November in Raipur.
The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets was recorded at stable levels today at INR 12,600/t on account of some proportionate hike in sponge iron and billet prices.
SteelMint’s daily price assessment for rebar and wire rod rose by INR 600/t, while sponge iron prices increased by INR 400/t d-o-d.
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 41,000-41,400/t were recorded during the 11:30 pm to 3:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 41,000/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 41,020/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 41,010/t, rounded to INR 41,000/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
Leave a Reply