SteelMint's domestic billet index falls INR 400/t amid low buying interest - 13 Oct

SteelMint's daily steel billet index was assessed at INR 47,750/tonne (t) (- INR 400/t) exw-Raipur on 13 October, 2022.

The index remained down on account of lower bids following measured finished steel sales. Hence, most of the re-rollers have lowered bulk bookings of billets. This led to narrow spot trades over the last few days.

About 3,600 t of spot billets trades were recorded today as against 2,550 t on 12 October.

With the sharp fall in billets prices, the conversion spread of standalone furnaces in Raipur from sponge PDRI to billets drop further by INR 200/t to INR 16,350/t today.

SteelMint's daily price assessment for wire rods and rebars fell by INR 400/t, while sponge iron prices declined by INR 200/t in Raipur.

About 2,900 t of wire rods deals were recorded today as against 1,600 t yesterday. On the other hand, about 2,300 t of rebars deals were recorded as against 1,050 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 47,700-47,800/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 47,753/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 47,793/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 47,773/t, rounded to INR 47,750/t exw.

Click for detailed methodology

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