SteelMint’s daily steel billet index was assessed at INR 42,500/tonne (t) (- INR 300/t) exw-Raipur on 2 December, 2022.
Weak demand for finished steel has weighed on the index and spot trades also edged down to around 900 t today as against 1,550 t on 2 December.
Also, finished steel sales remained weak as just about 700 t of wire rod deals were recorded today in Raipur as against 800 t yesterday.
SteelMint’s daily price assessments for rebar fell by INR 400/t, while sponge iron and wire rods declined by INR 200/t d-o-d.
With the fall in billets prices, the conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets moved down slightly by INR 100/t d-o-d to INR 12,700/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 42,500-42,650/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 42,500/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Seven offers reported in the trading window and considered as T2 inputs. The average price of these seven was INR 42,542/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 42,521/t, rounded to INR 42,500/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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