SteelMint’s daily steel billet index was assessed at INR 48,350/tonne (t) (- INR 250/t) exw-Raipur on 11 October, 2022.
The index fell due to weak finished steel sales, which kept bids lower for billets even as spot trades fell to around 2,450 t today as against 3,700 t on 10 October.
With the decline in billet prices, the conversion spread of standalone furnaces in Raipur from sponge PDRI to billet declined slightly by INR 50/t to INR 16,650/t today.
SteelMint’s daily price assessment for wire rod fell by INR 300/t and for rebar by INR 100/t, while sponge iron prices declined by INR 200/t in Raipur.
About 1,000 t of wire rod deals were recorded today as against 800 t yesterday. About 700 t of rebar deals were recorded today as against 1,200 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) – Seven trades at INR 48,300-48,350/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 48,306/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Eight offers reported in the trading window and considered as T2 inputs. The average price of these eight was INR 48,350/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 48,328/t, rounded to INR 48,350/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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