SteelMint's billet index inches up on active finished steel sales - 23 Sep

SteelMint's daily steel billet index was assessed at INR 47,600/tonne (t) (+ INR 200), exw-Raipur, on 23 September, 2022.

About 3,950 t of transactions were recorded today, slightly up over 3,450 t on 22 September.

Active demand for billets and finished steel products continued to support the index through day trade.

In addition, the key factor behind the active participation in today's market was strengthening prices in the northern region. Thus, the buyers actively purchase material to secure more margins on changing dynamics.

With rising billet prices and firm sponge iron offers, the conversion spread of standalone producers from sponge PDRI to billets rose further by INR 200/t to INR 15,800/t in Raipur today.

SteelMint's daily price assessment of wire rods and sponge iron stayed firm, while that of rebars rose slightly by INR 100/t in Raipur today.

Deals of around 4,200 t of wire rods were recorded today as against 3,700 t yesterday. Also, 2,700 t of rebars trade were reported in today's trading window, against 3,200 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 47,400-47,700/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 47,572/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 47,592/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 47,582/t, rounded to INR 47,600/t exw.

Click for detailed methodology

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