SteelMint’s daily steel billet index was assessed at INR 44,450/tonne (t) (+INR 150) exw-Raipur on 9 November, 2022.
Although the index rose further, spot trades fell as buyers resisted higher offers due to dull sales on revised finished steel offers.
In addition, improved supply of billets in the spot market was another major reason which kept spot trading low, as a few re-rollers are also offering billets in the spot market on account of poor offtake of finished steel products i.e. rebar and wire rods. Therefore, spot billet trades remained low.
Spot trades in Raipur declined to around 2,300 t today as against 4,300 t on 8 November.
The conversion spread of the standalone furnaces in Raipur from sponge PDRI to billets increased by INR 50/t to INR 14,250/t today due to strengthening billet prices.
SteelMint’s daily price assessment for wire rods rose by INR 200/t and for sponge iron by INR 100/t, while the rebar assessment remained stable d-o-d.
About 2,450 t of wire rod trades were reported today as against 3,400 t yesterday. Around 2,600 t of rebar deals were recorded in Raipur today as against 3,000 t yesterday.
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) – Five trades at INR 44,400-44,700/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 44,473/t which is given a 50% weightage in the final price calculation. Apart from these one trade of INR 44,700 recorded at 1:47 pm was excluded due to timing.
- Other Price Indicators – bids/offers/indicative (T2) – Thirteen offers reported in the trading window and considered as T2 inputs. The average price of these thirteen was INR 44,469/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 44,471/t, rounded to INR 44,450/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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