SteelMint’s daily steel billet index was assessed at INR 48,700/tonne (t) (+ INR 250) exw-Raipur on 1 October, 2022.
The index rose further following strengthening steel prices in the northern region. However, at revised (higher) offers, billets demand slowed down due to limited inquiries in finished steel products.
Sources said that the approaching festive holidays in some regions is resulting in slow off take in finished steel products, leading to a fall in spot trade volumes. SteelMint recorded a total of 2,050 t of billets deals today as against 2,200 t yesterday.
With an increase in billets prices, the conversion spread of standalone furnaces in Raipur from sponge PDRI to billets gained by INR 200/t to INR 16,800/t today.
SteelMint’s daily price assessment of rebars and wire rods have increased slightly by INR 100/t. The price assessment for sponge iron increased marginally by INR 50/t in Raipur today.
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) – Six trades at INR 48,600-48,900/t were recorded during the 11:30 pm to 3:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 48,713/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 48,725/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 48,719/t, rounded to INR 48,700/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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