SteelMint's domestic billet index falls further on limited buying interest - 12 Oct

SteelMint's daily steel billet index was assessed at INR 48,150/tonne (t) (- INR 200/t) exw-Raipur on 12 October, 2022.

The index fell further on account of weak demand following dull finished steel sales. Meanwhile, lower spot trades were recorded at around 2,550 t today as against 2,450 t on 11 October.

With the constant fall in billet and sponge iron prices, the conversion spread of standalone furnaces in Raipur from sponge PDRI to billets declined by INR 100/t to INR 16,550/t today.

SteelMint's daily price assessment for wire rod and rebar fell by INR 300/t, while sponge iron prices declined by INR 100/t in Raipur.

About 1,600 t of wire rod deals were recorded today as against 1,000 t yesterday. On the other hand, about 1,050 t of rebar deals were recorded as against 700 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) - Eight trades at INR 48,000-48,200/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 48,161/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Five offers reported in the trading window and considered as T2 inputs. The average price of these five was INR 48,140/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 48,151/t, rounded to INR 48,150/t exw.

Click for detailed methodology

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