SteelMint’s daily steel billet index was assessed at INR 42,800/tonne (t) (- INR 200/t) exw-Raipur on 1 December, 2022.
The index slightly fell as buyers held bids due to sufficient buying in last couple of days and the higher volatile prices. Hence, they have opted the wait-and-watch mode for more procurement.
Also, limited spot trades in finished steel products have forced re-rollers to limit their raw material (sponge iron & billets) purchases, resulting a fall in spot billets trades to around 1,550 t today as against 5,050 t on 30 November in Raipur.
About 800 t of rebars deals were recorded today as against 7,900 t yesterday. In addition, 800 t of wire rods trades were recorded today as against 2,650 t yesterday in Raipur.
SteelMint’s daily price assessments for wire rods fell by INR 400/t, and those for rebars remained stable. However, sponge iron prices rose by INR 300/t d-o-d.
With decline in billets prices and the surge in sponge iron prices, the conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets plunged by INR 500/t d-o-d to INR 12,800/t.
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) – Two trades at INR 42,700/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 42,700/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Ten offers reported in the trading window and considered as T2 inputs. The average price of these ten was INR 42,867/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 43,784/t, rounded to INR 43,800/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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