SteelMint’s daily steel billet index was assessed at INR 39,900/tonne (t) (- INR 700/t) exw-Raipur on 18 November, 2022.
The index fell further on account of lower bids and weak spot trades following moderate demand for steel products due to sufficient stocks at mills.
Dull demand for semis weighed on spot billet trades, which fell to around 2,320 t today as against 2,520 t on 17 November.
With the constant drop in prices, the conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets dropped INR 200/t d-o-d to INR 12,500/t today.
SteelMint’s daily price assessment for wire rods plunged INR 700/t, while rebar prices fell by INR 400/t and sponge iron offers dropped INR 500/t d-o-d.
About 750 t of rebar trades were recorded today as against 3,600 t yesterday. Also, 2,200 t of wire rod deals were heard as against 1,650 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 39,800-40,000/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 39,882/t which is given a 50% weightage in the final price calculation. Apart from these one trade of INR 40,000 recorded at 1:18 pm was excluded due to timing.
- Other Price Indicators – bids/offers/indicative (T2) – Eight offers reported in the trading window and considered as T2 inputs. The average price of these eight was INR 39,963/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 39,923/t, rounded to INR 39,900/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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