SteelMint’s daily steel billet index was assessed at INR 48,250/tonne (t) (+250), exw-Raipur, on 27 September, 2022.
The price rally in north India continued to lift the billet index despite slow buying and low bids in the spot market of Raipur. Finished steel sales in Raipur weakened on revised (higher) offers, SteelMint notes.
About 3,550 t of trades were recorded today, as against 4,900 t on 26 September.
With rising billet offers and firm sponge iron offers, the conversion spread of standalone furnaces in Raipur from sponge PDRI to billets rose further by INR 250/t to INR 16,450/t today.
SteelMint’s daily price assessment for rebar rose by INR 200/t and of wire rod by INR 100/t, while sponge iron prices remained firm in Raipur.
About 1,700 t of trades in wire rod were recorded today as against 3,850 t yesterday. Also, 1,650 t of rebar deals were recorded in today’s trading window as against 2,900 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) – Six trades at INR 48,200-48,400/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 48,259/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Ten offers reported in the trading window and considered as T2 inputs. The average price of these ten was INR 48,236/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 48,248/t, rounded to INR 48,250/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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