SteelMint’s daily steel billet index was assessed at INR 46,450/tonne (t) (- INR 350/t) exw-Raipur on 28 October, 2022.
The index dropped further, although spot trades have improved on a daily basis with a few bulk deals taking place. The buyers (re-rollers) stated that they were anticipating a rebound in steel demand and prices from the coming week as the festive season draws to a close. Thus, restocking demand is gathering pace.
Spot billet trades improved by over two-fold today to 5,650 t as against 2,750 t on 27 October.
With the constant fall in billet prices, the conversion spread (from sponge PDRI to billets) of standalone furnaces in Raipur fell slightly by INR 50/t to INR 15,050/t.
SteelMint’s daily price assessment for rebar and sponge iron dropped by INR 300/t, while the assessment for wire rods plunged INR 400/t today in Raipur.
About 1,000 t deals of wire rods and around 500 t of rebar deals were recorded in today’s trading window.
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) – Seven trades at INR 46,400-46,600/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 46,492/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Ten offers reported in the trading window and considered as T2 inputs. The average price of these ten was INR 46,450/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 46,471/t, rounded to INR 46,450/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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