SteelMint's billet index edges lower on subdued finished steel sales- 19 Sep

SteelMint's daily steel billet index was assessed at INR 47,700/tonne (t) (- INR 150/t) exw-Raipur on 19 September, 2022.

About 4,300 t of spot billet transactions were recorded in today's trading window.

The index trended down as bids continued to remain low amid weak finished steel sales followed by the decline in steel prices in the northern region. Following the decline in billet prices, the conversion spread of standalone producers from sponge PDRI to billet inched down by INR 100/t to INR 15,400/t in Raipur today.

SteelMint's daily price assessment of rebars and wire rods dropped by INR 300/t, and that of sponge iron moved down by INR 200/t in Raipur today.

Deals of around 350 t of wire rods and 600 t of rebars were recorded in today's trading window.

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) - Eight trades at INR 47,700-47,800/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 47,705/t which is given a 50% weightage in the final price calculation. Apart from this one trade of INR 47,800 recorded at 12:16 pm was excluded due to timing.
  
  

• Other Price Indicators - bids/offers/indicative (T2) - Fourteen offers reported in the trading window and considered as T2 inputs. The average price of these fourteen was INR 47,690/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 47,698/t, rounded to INR 47,700/t exw.

Click for detailed methodology

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