SteelMint’s daily steel billet index was assessed at INR 42,300/tonne (t) (-INR 1,150) exw-Raipur on 14 November, 2022.
The index dropped sharply to a one-year low: the previous low of INR 41,950/t exw was recorded on 23 December, 2021. Poor buying interest along with a sharp correction in prices in north India led to the rapid decline in spot trades.
About 1,020 t of trades were recorded today as against 1,450 t on 12 November.
The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets dropped INR 550/t to INR 13,200/t today.
SteelMint’s daily price assessment for wire rod plunged INR 1,300/t, while rebar prices dipped by INR 1,000/t and sponge iron by INR 600/t d-o-d.
About 1,400 t of rebar trades were recorded by SteelMint in today’s trading window 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) – Three trades at INR 42,200-42,300/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 42,253/t which is given a 50% weightage in the final price calculation. Apart from these two trades of INR 42,500 & INR 43,100 recorded at 12:34 pm & 12:00 pm were 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 42,375/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 42,314/t, rounded to INR 42,300/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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