SteelMint’s daily steel billet index was assessed at INR 42,200/tonne (t) (- INR 1,300/t) exw-Raipur on 22 November, 2022.
The index fell further due to weak buying interest and lower bids on account of sluggish finished steel sales. Amidst a free fall in offers a majority of buyers held their bids resulting in a sharp fall in the index and trade volumes fell to around 1,100 t today as against 1,650 t on 21 November.
With the sharp fall in billet prices, the conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets fell by INR 300/t to INR 12,700/t today.
SteelMint’s daily price assessment for sponge iron fell by INR 1,000-1,500/t, while wire rods prices declined by INR 1,300/t and rebars by INR 1,200/t d-o-d.
About 800 t of rebars and 1,700 t of wire rods trades were recorded today in Raipur. However, about 1,400 t of deals had been heard yesterday for each product.
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) – Two trades at INR 42,100-42,200/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 42,136/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Seven offers reported in the trading window and considered as T2 inputs. The average price of these seven was INR 42,300/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 42,218/t, rounded to INR 42,200/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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