SteelMint’s daily steel billet index was assessed at INR 48,000/tonne (t) (+ INR 300/t) exw-Raipur on 14 September, 2022.
Spot billet transactions fell to about 3,250 t today as against 5,500 t on 13 September.
The index rose because steel prices rallied in northern India in the first half of the day today as finished steel sales showed an upward trend. However, in the late hours, demand turns sluggish with the bids turning lower. Ultimately, spot trade in billets dipped below yesterday’s levels.
With the rise in billet prices, the conversion spread from sponge PDRI to billet for standalone producers rose further to INR 15,300/t in Raipur today.
SteelMint’s daily price assessment for rebars and sponge iron rose by INR 200/t, while the assessment for wire rods gained by INR 300/t in Raipur.
About 5,350 t of transactions in wire rods were recorded today as against 2,000 t yesterday. Also, 3,300 t of trade in rebar was recorded, which was stable d-o-d.
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 48,000-48,300/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 48,000/t which is given a 50% weightage in the final price calculation. Apart from this two trades of INR 48,200 recorded at 2:16 pm & 2:29 pm respectively, were excluded due to timing.
- Other Price Indicators – bids/offers/indicative (T2) – Thirteen offers reported in the trading window and considered as T2 inputs. The average price of these thirtee was INR 48,036/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 48,018/t, rounded to INR 48,000/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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