SteelMint’s billet index rebounds on firm buying interest – 21 Oct

SteelMint’s daily steel billet index was assessed at INR 47,300/tonne (t) (+ INR 600/t) exw-Raipur on 21 October, 2022.

The Index rose on account of price recovery in north India as well as the rise in sponge iron prices. However, spot billet trades remained firm (low) on account of measured finished steel sales.

The upcoming festive holidays have led to improved demand for prompt dispatch, although future bookings remain limited, sources told SteelMint.

Spot billet deals fell to around 2,450 t today in Raipur as against 2,700 t on 21 October.

With the sharp surge in billet prices, the conversion spread of standalone furnaces increased in Raipur. The spread from sponge PDRI to billet went up by INR 100/t to INR 15,500/t.

SteelMint’s daily price assessments for rebar and wire rod surged INR 400/t, while sponge iron prices gained INR 500/t today in Raipur.

About 2,000 t of wire rod deals were recorded in today’s trading session as against 3,000 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) – Three 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 47,257/t which is given a 50% weightage in the final price calculation. Apart from these one trade of INR 46,900 recorded at 12:42 pm was excluded due to timing.
• Other Price Indicators – bids/offers/indicative (T2) – Seven offers reported in the trading window and considered as T2 inputs. The average price of these seven was INR 47,383/t and given a 50% weightage in the final price calculation.

The final price for billet exw Raipur was at INR 47,320/t, rounded to INR 47,300/t exw.

Click for detailed methodology

T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology