SteelMint’s daily steel billet index was assessed at INR 44,200/tonne (t) (+ INR 200/t) exw-Raipur on 8 December, 2022.
Although the index strengthened, buyers turned cautious about taking positions on higher offers. Since they have booked enough volumes as per their finished steel sales, they opted to wait and watch instead.
Billets transactions of 1,200 t were recorded today in Raipur as against 5,450 t on 7 December.
SteelMint’s daily price assessments for wire rods increased by INR 500/t, while for rebar an increase of INR 200/t was witnessed. Sponge iron prices rose by INR 300-400/t d-o-d.
The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets declined by INR 200/t d-o-d to INR 13,300/t.
Spot wire rod trades dropped to around 2,000 t today from 5,250 t 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) – Three trades at INR 44,200-44,300/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 44,290/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 44,133/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 44,212/t, rounded to INR 44,200/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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