SteelMint’s daily steel billet index was assessed at INR 47,700/tonne (t) (+ INR 300/t) exw-Raipur on 13 September, 2022.
About 5,500 t of spot billet transactions were recorded today as against 5,550 t on 12 September.
Active demand followed by a surge in steel prices in the northern region led to the hike in the index today.
The conversion spread from sponge PDRI to billet for standalone producers remained stable today at INR 15,200/t in Raipur.
SteelMint’s daily price assessment for rebar and wire rod rose by INR 400/t, while the assessment for sponge iron increased by INR 300/t in Raipur.
About 2,000 t of transactions in wire rod were recorded today as against 3,900 t yesterday. Also, 3,300 t of trades in rebar were recorded against 2,600 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) – Nine trades at INR 47,600-47,800/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 47,685/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Six offers reported in the trading window and considered as T2 inputs. The average price of these six was INR 47,675/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 47,680/t, rounded to INR 47,700/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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