SteelMint’s daily steel billet index was assessed at INR 42,300/tonne (t) (=) exw-Raipur on 15 November, 2022.
The index remained stable following active finished steel sales and a slight recovery in steel prices in the northern region. Hence, a majority of billet suppliers kept offers higher in anticipation of price support.
Following the strengthening in billet offers, demand remained active during the first half today. This, in turn, led to improved spot trades of billets, which increased to 2,750 t today as against 1,020 t on 14 November.
The conversion spread of the standalone furnaces in Raipur from sponge iron (PDRI) to billets rose INR 150/t to INR 13,350/t today. Firm billet offers and decline in sponge iron offers resulted in a slight recovery in margins.
SteelMint’s daily price assessment for rebar plunged INR 600/t, while sponge iron prices fell by INR 100-200/t. However, wire rod offers rose by INR 200/t d-o-d.
About 4,200 t of rebar trades were recorded today as against 1,400 t yesterday. Also, demand for wire rods increased and nearly 9,000 t of deals were recorded today, largely for LC grade material.
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 42,200-42,500/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 42,277/t which is given a 50% weightage in the final price calculation. Apart from these two trades of INR 42,500 & INR 42,600 recorded at 1:00 pm and 1:55 pm were excluded due to timing.
- Other Price Indicators – bids/offers/indicative (T2) – Twelve offers reported in the trading window and considered as T2 inputs. The average price of these twelve was INR 42,367/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 42,322/t, rounded to INR 42,300/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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