SteelMint’s daily steel billet index was assessed at INR 43,450/tonne (t) (-INR 150) exw-Raipur on 12 November, 2022.
The index dropped further following weak demand in finished steel products along with a slight rise in inventories with the suppliers. In addition, the key factor behind the sluggish trends was a sharp fall in steel prices in the northern region.
These factors collectively pushed down the index and spot trades of billets fell to around 1,450 t today as against 5,250 t on 11 November.
The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets remained low and stood at INR 13,750/t today.
SteelMint’s daily price assessment for wire rods fell INR 600/t, while rebar slid INR 100/t and sponge iron by INR 100-200/t, d-o-d 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) – Four trades at INR 43,400-43,500/t were recorded during the 11:30 am to 3:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 43,462/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Nine offers reported in the trading window and considered as T2 inputs. The average price of these nine was INR 43,486/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 43,474/t, rounded to INR 43,450/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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