SteelMint’s daily steel billet index was assessed at INR 48,850/tonne (t) (+ INR 150/t) exw-Raipur on 8 October, 2022.
The index remained strong on account of rising offers due to the price rally in the northern region. However, spot trades remained low and fell to around 2,100 t today as against 4,050 t on 7 October on revised (higher) offers.
The conversion spread of standalone furnaces in Raipur from sponge PDRI to billet moved higher by INR 50/t due to the rise in billet prices to INR 16,850/t today.
SteelMint’s daily price assessment for wire rod rose by INR 200/t and for sponge iron by INR 100/t, while the assessment for rebar remained stable 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) – Three trades at INR 48,800-49,000/t were recorded during the 11:30 am to 4:00 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 48,860/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 48,842/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 48,851/t, rounded to INR 48,850/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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