SteelMint’s daily steel billet index was assessed at INR 41,200/tonne (t) (+ INR 200/t) exw-Raipur on 28 November, 2022.
The index rose on account of higher offers floated by the suppliers due to the rise in steel prices in the northern region during the first half today. However, spot trading volumes remained low due to dull finished steel sales, lower bids and unclear market trends. Weak market trends globally turned buyers cautious, which resulted in limited buying interest across steel products.
Spot trades of billets dropped to around 1,970 t today as against 2,350 t on 26 November in Raipur.
The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets was recorded at INR 12,900/t, up by INR 300/t owing to surge in billet prices.
SteelMint’s daily price assessment for sponge iron fell by INR 100/t, while wire rod rose by INR 100/t, however, rebars offers were unaltered, d-o-d.
About 1,400 t of rebars deals and around 1,200 t of wire rods trades were recorded today in Raipur.
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 41,100-41,500/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 41,204/t which is given a 50% weightage in the final price calculation. Apart from these one trade of INR 41,300 recorded at 1:22 pm was excluded due to timing.
- 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 41,210/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 41,207/t, rounded to INR 41,200/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
Leave a Reply