SteelMint’s daily steel billet index was assessed at INR 45,300/tonne (t) (- INR 200) exw-Raipur on 3 November, 2022.
The index trended lower on account of weak demand followed by poor offtake in finished steel products, which ultimately put pressure on semis prices.
Spot billet trades of around 1,220 t were recorded today as against 1,150 t on 2 November.
With the constant fall in billet prices, the conversion spread of standalone furnaces in Raipur from sponge PDRI to billets fell by INR 200/t to INR 14,300/t today.
SteelMint’s daily price assessment for wire rod and rebar fell by INR 200/t, while sponge iron declined by INR 100/t d-o-d.
About 550 t of rebar trades were recorded today as against 1,100 t yesterday, and around 1,550 t of wire rod deals were recorded in Raipur today as against 1,250 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 45,300-45,500/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 45,340/t which is given a 50% weightage in the final price calculation. Apart from these one trade of INR 45,300 recorded at 5:31 pm was excluded due to timing.
- 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 45,306/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 45,323/t, rounded to INR 45,300/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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