SteelMint’s daily steel billet index has shown a downward trend today, falling by INR 300/tonne (t) d-o-d to INR 43,600/t exw-Raipur on 13 December, 2022.
The billets market witnessed less trading activity as the declining price trend in northern region in the first half of the day has majorly impacted the buying decisions. However, spot trade remained average as buyers resisted purchasing at higher offers, citing volatile demand in finished steel products.
Around 2,850 t of billets transactions were recorded today in Raipur as against 2,950 t seen on 12 December.
SteelMint’s daily price assessments for wire rods inched down by INR 100/t, rebar edged lower by INR 100/t and sponge iron fell by INR 300/t d-o-d. Wire rod trade in Raipur was recorded at 2,200 t today as against 900 t on 12 December and 900 t of rebars deals were recorded as against 1,100 t recorded yesterday.
Meanwhile, the conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets remained unchanged at INR 13,300/t.
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) – Five trades at INR 43,500-43,700/t was 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 43,588/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Fourteen offers reported in the trading window and considered as T2 inputs. The average price of these fourteen was INR 43,565/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 43,577/t, rounded to INR 43,600/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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