SteelMint's billet index rises INR 100/t despite limited enquiries, lower steel sales - 15 Sept

SteelMint's daily steel billet index was assessed at INR 48,100/tonne (t) (+ INR 100/t) exw-Raipur on 15 September, 2022.

Spot billet transactions fell to about 2,800 t today as against 3,250 t on 14 September.

The index remained strong due to higher steel prices in northern India, following which producers floated higher offers. However, buyers resisted higher offers, citing limited demand for finished steel products.

With the rise in billet prices, the conversion spread from sponge PDRI to billet for standalone producers rose further by INR 100/t to INR 15,400/t in Raipur today.

SteelMint's daily price assessment for rebar, wire rod and sponge iron were stable in Raipur on d-o-d basis.

About 650 t of transactions in wire rod were recorded today as against 5,350 t yesterday. Also, 800 t of trade in rebar was recorded as against 3,300 t yesterday. Trades volumes cumulatively dropped by over 80% d-o-d.

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) - Five trades at INR 48,000-48,400/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 48,157/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 48,078/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 48,118/t, rounded to INR 48,100/t exw.

Click for detailed methodology

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