SteelMint’s daily steel billet index was assessed at INR 46,250/tonne (t) (- INR 200/t) exw-Raipur on 29 October, 2022.
The index continued the downtrend on account of lower bids on dull buying interest largely due to the constant drop in prices in north India. This forced billet producers to lower their offers and the index moved down on limited spot trades which fell to around 750 t today as against 5,650 t yesterday.
With the significant decline in billets prices, the conversion spread (from sponge PDRI to billets) of standalone furnaces in Raipur fell by INR 200/t to INR 14,850/t.
SteelMint’s daily price assessment for rebar and wire rods dropped by INR 200/t, while the assessment for sponge iron remained stable today in Raipur.
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 46,150-46,300/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 46,250/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Thirteen offers reported in the trading window and considered as T2 inputs. The average price of these thirteen was INR 46,250/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 46,250/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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