SteelMint’s daily steel billet index was assessed at INR 41,800/tonne (t) (+ INR 600/t) exw-Raipur on 29 November, 2022.
The index increased on account of improved demand following price recovery in the northern region, which influenced suppliers to keep offers higher amidst active demand in the spot market.
With the price recovery, spot billets trades in Raipur improved to about 3,820 t today as against 1,970 t on 28 November in Raipur.
The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets increased by INR 200/t to INR 13,100/t due to surge in billets prices.
SteelMint’s daily price assessment for wire rods gained by INR 700/t, rebars by INR 500/t, while sponge iron rose by INR 400/t d-o-d.
About 4,200 t of rebar deals were recorded today as against 1,400 t yesterday. Also, 2,500 t of wire rods trades were recorded today as against 1,200 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) – Six trades at INR 41,700-42,000/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 41,777/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Nine offers reported in the trading window and considered as T2 inputs. The average price of these nine was INR 41,786/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 41,782/t, rounded to INR 41,800/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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