SteelMint’s daily steel billet index was assessed stable at INR 47,400/tonne (t) exw-Raipur on 12 September, 2022.
However, spot trade improved with buyers back in positions to procure raw materials. Also, the rising ingot/billet prices in the northern region – especially Punjab – have influenced buyers to resume purchases. This led to a surge in spot billet transactions in Raipur.
About 5,550 t of spot billet transactions were recorded today as against 1,300 t on 10 September.
The conversion spread (margins) from sponge PDRI to billets for standalone billet producers increased by INR 250/t today to INR 15,200/t in Raipur.
SteelMint’s daily price assessment for rebars and wire rods fell by INR 100/t, while sponge iron declined by INR 200-300/t in Raipur today.
About 3,900 t of transactions in wire rods and around 2,600 t of rebar were traded in today’s trading window 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) – Twelve trades at INR 47,300-47,500/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 47,368/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Eight offers reported in the trading window and considered as T2 inputs. The average price of these eight was INR 47,389/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 47,379/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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