SteelMint: Billet index rises INR 100/t on improved spot trades - 9 Sept

SteelMint's daily steel billet index was assessed at INR 47,350/tonne (t) (+ INR 100) exw-Raipur on 9 September, 2022.

About 5,900 t of transactions were recorded today as against 3,200 t on 8 September.

Prices remained strong as spot trades improved followed by active buying interest for finished steel products and surging steel prices in the northern region.

With the slight rise in billet prices and the decline in sponge iron offers, margins of standalone billet producers have improved. The conversion spread (margin) from sponge PDRI to billets in Raipur rose by INR 300/t d-o-d to INR 15,050/t.

SteelMint's daily price assessment for wire rods rose by INR 100/t, while for rebar it is stable. However, sponge iron prices fell by INR 200/t in Raipur today.

About 4,150 t of transactions in wire rods were recorded as against 1,500 t yesterday. Also, around 2,800 t of rebar was traded in Raipur as against 3,500 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) - Seven trades at INR 47,300-47,400/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 47,361/t which is given a 50% weightage in the final price calculation. Apart from this one trade of INR 47,200 recorded at 12:56 pm was excluded due to timing.
  
  

• 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 47,344/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 47,353/t, rounded to INR 47,350/t exw.

Click for detailed methodology

T1 - Trade, T2 - Offer/Bid/Indicative, *Normalized price as per methodology