SteelMint’s daily steel billet index was assessed at INR 48,000/tonne (t) (+ INR 400), exw-Raipur, on 24 September, 2022.
About 1,800 t of transactions were recorded today, down over 50% as against 3,950 t on 23 September.
The positive sentiments in the Raipur market following the rally in billet prices in the northern region lifted the index. However, spot trade volumes fell d-o-d as demand for finished steel was moderate at revised (higher) offers.
With rising billet offers, the conversion spread of standalone producers Raipur from sponge PDRI to billets increased further by INR 300/t to INR 16,100/t today.
SteelMint’s daily price assessment of wire rods and rebars rose by INR 400/t, while that of sponge iron edge up by INR 100/t.
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 47,800-48,000/t were recorded during the 11:30 am to 3:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 47,978/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Twelve offers reported in the trading window and considered as T2 inputs. The average price of these twelve was INR 47,981/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 47,980/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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