SteelMint’s daily steel billet index was assessed at INR 47,250/tonne (t) (- INR 450/t) exw-Raipur on 15 October, 2022.
The index fell further following weak finished steel sales, which ultimately lowered bids for procuring billets. In addition, the key factor behind the price correction was softening steel prices in major locations including north India. Thus, buying confidence was less among participants, leading to limited spot trades in semis and finished steel products.
Spot billets trades of billets fell to around 1,500 t today in Raipur as against 2,000 t on 14 October.
With the sharp price fall in billets, the conversion spread of standalone furnaces in Raipur from sponge PDRI to billets also moved down by INR 300/t to INR 16,000/t today.
SteelMint’s daily price assessment for wire rods fell by INR 200/t and rebars by INR 100/t, while sponge iron prices declined by INR 100-200/t 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) – Two trades at INR 47,200/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 47,200/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Thirteen offers reported in the trading window and considered as T2 inputs. The average price of these thirteen was INR 47,315/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 47,258/t, rounded to INR 47,250/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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