SteelMint’s daily steel billet index was assessed at INR 47,700/tonne (t) (- INR 50/t) exw-Raipur on 14 October, 2022.
The index fell amid fewer spot trades getting concluded on account of low finished steel sales. Market participants are little bit confident about a potential price correction in coming days, hence only need-based purchases were made.
Billet trades in Raipur have dropped to around 2,000 t today as against 3,600 t recorded on 13 October.
With billets prices cooling off, the conversion spread of standalone furnaces in Raipur from sponge PDRI to billets dropped slightly by INR 50/t to INR 16,300/t today.
SteelMint’s daily price assessment for rebars fell by INR 200/t and wire rods by INR 100/t, while sponge iron prices remained stable in Raipur.
About 2,000 t of wire rods deals were recorded today as against 2,900 t yesterday. On the other hand, about 2,200 t of rebars deals were recorded as against 2,300 yesterday.
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 47,600-48,000/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 47,684/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 47,706/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 47,695/t, rounded to INR 47,700/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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