SteelMint’s daily steel billet index was assessed at INR 48,350/tonne (t) (+ INR 50) exw-Raipur on 4 October, 2022.
The index rose on active buying interest following price recovery in the northern region, which influenced suppliers to keep prices firm and despite festive mood trades were active in the spot market today.
SteelMint recorded a total of 2,700 t of billets deals in Raipur today as against 850 t on 3 October.
With the rise in billets prices and the decline in sponge iron offers, the conversion spread of standalone furnaces in Raipur from sponge PDRI to billets is up by INR 100/t to INR 16,600/t today.
SteelMint’s daily price assessment of rebars and wire rods rose by INR 100/t, while that of sponge iron fell marginally by INR 50/t in Raipur today.
About 8,000 t of wire rods deals were recorded today as against 650 t yesterday. Also, 3,150 t of rebar trades were recorded in today’s trading window as against 500 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) – Four trades at INR 48,300-48,400/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 48,337/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Six offers reported in the trading window and considered as T2 inputs. The average price of these six was INR 48,333/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 48,335/t, rounded to INR 48,350/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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