SteelMint’s daily steel billet index was assessed at INR 48,700/tonne (t) (+ INR 350) exw-Raipur on 6 October, 2022.
The index rose on improved spot trades along with the rebound in steel prices in the northern region. Drying up of raw material inventories with a few major re-rollers resulted in improved demand for billet in Raipur today.
SteelMint recorded a total of 6,150 t of billet deals in Raipur today as against 2,700 t on 4 October.
With the increase in prices, the conversion spread of standalone furnaces in Raipur from sponge PDRI to billet rose by INR 200/t to INR 16,800/t today.
SteelMint’s daily price assessment of rebar and wire rod rose by INR 200/t, while that of sponge iron rose by INR 150/t in Raipur today.
About 3,200 t of wire rod deals were recorded and around 1,800 t of rebar trades were recorded today.
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 48,600-48,850/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 48,761/t which is given a 50% weightage in the final price calculation. Apart from these one trade of INR 48,800 recorded at 12:42 pm was excluded due to timing.
- 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 48,675/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 48,718/t, rounded to INR 48,700/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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