SteelMint’s daily steel billet index has risen marginally to INR 43,900/tonne (t) ( + INR 100/t) exw-Raipur on 12 December, 2022.
The index increased mainly due to higher offers in the market following the price recovery seen during the morning hours in north India. However, spot trades remained average as buyers resisted higher offers citing moderate demand for finished steel products.
Billet transactions of around 2,950 t were recorded today in Raipur as against 300 t on 10 December.
SteelMint’s daily price assessments for wire rods remained unchanged, while rebar fell further by INR 200/t and sponge iron prices fell by INR 100/t d-o-d. Wire rod trades in Raipur were recorded today at 900 t, while 1,100 t of rebar trades were heard.
The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets increased by INR 200/t d-o-d to INR 13,300/t.
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 43,800-44,100/t was 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 43,959/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 43,886/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 43,923/t, rounded to INR 43,900/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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