SteelMint’s daily steel billet index was assessed at INR 46,300/tonne (t) exw-Raipur, a decrease of INR 200/t d-o-d on 23 February, 2022.
About 2,800 t of transactions were recorded today as against 1,800 t on 22 February.
The index fell marginally on account of sluggishness in the market following dull finished steel sales. However, spot trade improved as a few wire rod producers resumed purchases due to limited stocks.
SteelMint’s daily price assessments for rebar remain stable, while wire rod declined by INR 300/t d-o-d. Meanwhile, sponge iron prices in Raipur remained stable.
Around 2,350 t of wire rod trades were reported in Raipur today.
The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets declined slightly to INR 14,250/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 46,200-46,500/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 46,292/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Seven offers reported in the trading window and considered as T2 inputs. The average price of these seven was INR 46,321/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 46,307/t, rounded to INR 46,300/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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