SteelMint’s daily steel billet index was assessed at INR 48,600/tonne (t) (- INR 250/t) exw-Raipur on 10 October, 2022.
The index moved down on account of lower bids following dull finished steel sales. This led to a fall in billet offers.
SteelMint recorded about 3,700 t of trades today as against 2,100 t on 8 October.
With the decline in billet prices, the conversion spread of standalone furnaces in Raipur from sponge PDRI to billet has declined by INR 100/t to INR 16,700/t today.
SteelMint’s daily price assessment for rebar and wire rod fell by INR 200/t and for sponge iron by INR 100/t in Raipur.
About 800 t of wire rod deals and around 1,200 t of rebar trades were recorded in today’s trading window.
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) – Seven trades at INR 48,550-48,900/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 48,550/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 48,675/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 48,613/t, rounded to INR 48,600/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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