SteelMint’s daily steel billet index was assessed at INR 47,400/tonne (t) (+ INR 150/t) exw-Raipur on 21 September, 2022.
But spot billet transactions fell nearly 50% to around 3,320 t today as against 7,120 t on 20 September.
Even though the index rose, spot trades fell as the majority of buyers held back bookings on account of sufficient booking volumes seen yesterday. Moreover, steel prices declined in the northern region in the second half today. Thus, spot trading in billets moved down d-o-d.
With a rise in billet prices and stability in the sponge iron market, the conversion spread of standalone producers from sponge PDRI to billets inched up by INR 150/t to INR 15,500/t in Raipur today.
SteelMint’s daily price assessment of sponge iron and rebars stayed firm, while that of wire rods went up by INR 200/t in Raipur today.
Deals of around 1,300 t of wire rods were recorded today as against 900 t yesterday. Also, 3,150 t of rebars trade were reported in today’s trading window, against 1,600 t 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 47,300-47,600/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 47,474/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Fourteen offers reported in the trading window and considered as T2 inputs. The average price of these fourteen was INR 47,371/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 47,423/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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