SteelMint’s daily steel billet index was assessed at INR 40,600/tonne (t) (- INR 600/t) exw-Raipur on 17 November, 2022.
Prices remained under pressure due to lower bids and low-to-moderate finished steel sales amidst pile up in inventories at the suppliers’ end.
Spot billet trades of about 2,520 t were recorded today as against 900 t on 16 November.
With the constant drop in sponge iron and billet prices, the conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets remained low, hovering around INR 12,700/t.
SteelMint’s daily price assessment for rebar plunged INR 1,000/t, while wire rod prices fell by INR 500/t and sponge iron offers dropped by INR 600-1,000/t d-o-d.
About 3,600 t of rebar trades were recorded today as against 1,250 t yesterday. Also, 1,650 t of wire rod trades were heard today as against 1,400 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) – Six trades at INR 40,400-40,900/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 40,535/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 40,667/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 40,601/t, rounded to INR 40,600/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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