SteelMint’s daily steel billet index was assessed at INR 43,600/tonne (t) (-INR 500) exw-Raipur on 11 November, 2022.
Although the index fell, trade volumes improved today as a few major buyers took positions as regards raw material stocks amidst assumptions that offers are unlikely to fall further. This led to a surge in spot billet trades to around INR 5,250/t today as against INR 2,160/t on 10 November.
The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets fell by INR 250/t to INR 13,750/t today with decline in billet prices.
SteelMint’s daily price assessment for wire rod fell INR 500/t, while rebar slid INR 200/t d-o-d. Sponge iron declined by INR 200-300/t, d-o-d in Raipur.
About 2,400 t of wire rod trades were reported today as against 650 t yesterday. Around 1,700 t of rebar deals were recorded in Raipur today as against 800 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) – Nine trades at INR 43,550-44,000/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 43,601/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 43,643/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 43,622/t, rounded to INR 43,600/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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