SteelMint’s daily steel billet index was assessed at INR 44,000/tonne (t) (+ INR 4,100/t) exw-Raipur on 19 November, 2022.
The index jumped by over 10% following the removal of export duties on steel and key raw materials for steelmaking.
Amid expectations of an optimistic trend with duty removal, suppliers floated higher offers. Several deals took place during the first half today.
With the sharp surge in offers, spot billets trade volumes rose to 5,700 t today as against 2,320 t on 18 November.
The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets moved up by INR 900/t d-o-d to INR 13,400/t today.
SteelMint’s daily price assessment for wire rods rose by INR 3,900/t, while rebars prices gained INR 4,600/t and sponge iron offers increased by INR 3,200/t d-o-d.
About 13,500 t of wire rods deals were recorded today 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 44,000-44,300/t were recorded during the 11:30 am to 3:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 44,000/t which is given a 50% weightage in the final price calculation. Apart from these one trade of INR 44,200 recorded at 3:45 pm was excluded due to timing.
- 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 44,013/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 44,007/t, rounded to INR 44,000/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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