SteelMint’s daily steel billet index was assessed at INR 43,000/tonne (t) (+ INR 1,200/t) exw-Raipur on 30 November, 2022.
The index rallied following improved spot trades in the form of active finished steel sales. In addition, prices rose in the northern region. This influenced buyers to take positions even though prices were on the higher side.
With the price rise, spot billet trades in Raipur increased to around 5,050 t today as against 3,820 t on 29 November.
The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets increased by INR 200/t to INR 13,300/t on rising billet prices.
SteelMint’s daily price assessments for rebar rose by INR 1,400/t, and those for wire rods and sponge iron rose by INR 1,000/t d-o-d.
About 7,900 t of rebar deals were recorded today as against 4,200 t yesterday. Also, 2,650 t of wire rods trades were recorded today as against 2,500 t yesterday in Raipur.
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 43,000-43,200/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 43,058/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Seven offers reported in the trading window and considered as T2 inputs. The average price of these seven was INR 42,990/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 43,024/t, rounded to INR 43,000/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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