SteelMint’s daily steel billet index is assessed at INR 44,200/tonne (t) (- INR 100/t) exw-Raipur on 19 December, 2022.
The index fell on account of limited and low enquiries due to weak demand for finished steel products. Hence, the purchase of raw materials was affected, resulting in the fall in spot trades of sponge iron and billets.
About 1,900 t of spot billet trades were recorded today in Raipur as against 1,520 t on 17 December.
SteelMint’s daily price assessments for rebar fell by INR 100/t, while wire rods remained stable. Sponge iron offers declined by INR 50/t d-o-d.
Wire rod trades in Raipur were recorded today at 500 t, while 600 t of rebar trades were heard.
With the decline in billet prices, the conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets moved down by INR 50/t d-o-d to INR 13,450/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) – Four trades at INR 44,100-44,400/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 44,200/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Eleven offers reported in the trading window and considered as T2 inputs. The average price of these eleven was INR 44,210/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 44,205/t, rounded to INR 44,200/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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