SteelMint's billet index stable on active demand for finished steel products - 22 Sep

SteelMint's daily steel billet index was assessed as stable at INR 47,400/tonne (t), exw-Raipur, on 22 September, 2022.

About 3,450 t of transactions were recorded today, slightly up over 3,320 t on 21 September.

Firm demand for billets and active finished steel sales, especially in wire rods, kept the index stable in terms of day trades.

In addition, strengthening prices in the northern region during the second half today influenced suppliers to keep offers strong, unliked yesterday, when deals in the late hours yesterday were few and prices had weakened.

With firm billet prices and a slight fall in sponge iron offers, the conversion spread of standalone producers from sponge PDRI to billets rose further by INR 100/t to INR 15,600/t in Raipur today.

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

Deals of around 3,700 t of wire rods were recorded today as against 1,300 t yesterday. Also, 3,200 t of rebars trade were reported in today's trading window, against 3,150 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) - Six trades at INR 47,200-47,500/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 47,310/t which is given a 50% weightage in the final price calculation.
  
  

• Other Price Indicators - bids/offers/indicative (T2) - Ten offers reported in the trading window and considered as T2 inputs. The average price of these Ten was INR 47,444/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 47,377/t, rounded to INR 47,400/t exw.

Click for detailed methodology

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