SteelMint’s daily steel billet index was assessed at INR 40,600/tonne (t) (+ INR 600/t) exw-Raipur on 25 November, 2022.
The index rebounded on improved buying interest following the rebound in finished steel sales today. Sizeable volumes of finished steel were traded and collectively about 16,000 t of deals were recorded today for rebar and wire rod in Raipur as against about 2,700 t yesterday.
About 6,400 t of spot billet trades were recorded in Raipur as against 2,570 t on 24 November.
Also, with the rise in billet prices, the conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets gained by INR 600/t to INR 12,600/t today.
SteelMint’s daily price assessment for wire rod rose by INR 400/t, that for rebar by INR 100/t, while sponge iron prices remained stable d-o-d.
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 40,500-40,700/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 40,642/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Thirteen offers reported in the trading window and considered as T2 inputs. The average price of these six was INR 40,538/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 40,590/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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