SteelMint’s daily steel billet index was assessed at INR 44,250/tonne (t) (- INR 450) exw-Raipur on 7 November, 2022.
The index continued the downtrend as bids continued to fall on account of a slight increase in stocks with the majority of suppliers, which led to the constant drop in steel prices. Thus, despite a slight improvement in spot trades d-o-d, prices continued the downward spiral.
About 2,750 t of spot billet trades were recorded today in Raipur as against 1,150 t on 5 November.
With the constant fall in billets prices, the conversion spread of standalone furnaces in Raipur from sponge PDRI to billets declined by INR 200/t to INR 14,000/t today.
SteelMint’s daily price assessment for wire rods fell by INR 400/t, while rebar and sponge iron declined by INR 200/t, d-o-d today.
About 3,200 t of wire rod trades and around 3,900 t of rebar deals were recorded today in Raipur.
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 44,200-44,300/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 44,278/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Ten offers reported in the trading window and considered as T2 inputs. The average price of these ten was INR 44,256/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 44,268/t, rounded to INR 44,250/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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