SteelMint’s daily steel billet index was assessed at INR 47,400/tonne (t) (+ INR 50) exw-Raipur on 10 September, 2022.
The index rose further due to the increase in steel prices in the northern region during the first half today. But transaction volumes fell sharply to about 1,300 t today as against 5,900 t on 9 September.
Buyers opted to wait and watch when offers rose since demand for finished steel products was restrained. Thus, majority of the buyers held their bookings today after placing sufficient orders yesterday.
The conversion margins from sponge PDRI to billets for standalone billet producers declined by INR 100/t today to INR 14,950/t in Raipur.
SteelMint’s daily price assessment for rebars rose by INR 300/t, wire rods by INR 100/t and sponge iron by INR 200/t in Raipur today.
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) – Four trades at INR 47,300-47,500/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 47,385/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Fifteen offers reported in the trading window and considered as T2 inputs. The average price of these fifteen was INR 47,425/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 47,405/t, rounded to INR 47,400/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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