SteelMint’s daily steel billets index was assessed at INR 46,750/tonne (t) (=) exw-Raipur on 19 October, 2022.
Buying enquiries were limited amid dull sales of finished steel products. However, the price volatility in the northern region kept billet offers firm d-o-d, in turn, keeping the index stable.
Spot billets deals fell to 1,750 t today in Raipur as against 2,500 t on 18 October.
Stability in billets prices and strengthening sponge iron offers have narrowed down the conversion spread of standalone furnaces in Raipur. The spread from sponge PDRI to billets dropped by INR 200/t to INR 15,450/t.
SteelMint’s daily price assessment for wire rods and sponge iron rose by INR 200/t, while rebars prices fell by INR 300/t today in Raipur.
About 800 t of wire rods deals were recorded in today’s trading window as against 3,300 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 46,600-46,900/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 46,760/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Eleven offers reported in the trading window and considered as T2 inputs. The average price of these eleven was INR 46,764/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 46,762/t, rounded to INR 46,750/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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