SteelMint’s daily steel billet index was assessed at INR 48,450/tonne (t) (+ INR 250) exw-Raipur on 30 September, 2022.
The index rebounded on higher steel prices in the northern region and because of sufficient orders with suppliers. However, spot trades edged down today as only need-based buying was witnessed, recording a total of 2,200 t today as against 2,300 t yesterday.
In today’s trading, buyers looking to urgently book material were seen active in the market, while purchases for future use remained postponed, which led to minimal spot deals.
With the rise in billet prices, the conversion spread of standalone furnaces in Raipur from sponge PDRI to billet rose slightly by INR 50/t to INR 16,600/t today.
SteelMint’s daily price assessment for rebar rose by INR 100/t and for wire rod by INR 400/t, while sponge iron prices fell by INR 200/t in Raipur today.
About 800 t of trades in wire rod were recorded today as against 1,850 t yesterday. About 3,950 t of rebar deals were concluded in today’s trading as against 3,900 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) – Seven trades at INR 48,500/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 48,500/t which is given a 50% weightage in the final price calculation. Apart from these one trade of INR 48,500 recorded at 1:12 pm was excluded due to timing.
- Other Price Indicators – bids/offers/indicative (T2) – Twelve offers reported in the trading window and considered as T2 inputs. The average price of these twelve was INR 48,443/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 48,472/t, rounded to INR 48,450/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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