SteelMint billet index (Exw Raipur) has been assessed at INR 30,250/t (+1,000), Exw Raipur on 31st August, 18:00 IST.
- 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 – Seven trades were recorded in the 2.30 to 5.30 pm SteelMint trading window and considered for final price calculation as T1 inputs. Out of which, three trades were recorded at INR 30,300/t, while two deals at INR 30,000/t, one at INR 30,100/t & one deal was at INR 30,200/t. The average price of these seven transactions were INR 30,171/t and given a 50% weightage in the final price calculation.
- Other Price Indicators (Firm bids/offers) T2 – There were eleven offers reported in the trading window and considered as T2 inputs. The average price of these was INR 30,341/t and given a 50% weightage in the final price calculation.
The final price for billet Exw-Raipur was INR 30,256/t, rounded to INR 30,250/t Exw.
Observations
- Karnataka government has allowed NMDC to resume production from Donimalai mines after 2 years on a condition that miner will pay additional royalty of 22.5%
- Market feels Chattisgarh government may ask NMDC to pay higher royalty
- Pellet makers have raised offers on limited availability and planned shut down
- Large mills are likely to raise offers for Sep deliveries
For detailed methodology – Click here
T1: Trade
T2: Offer/Bid/Indicative
Offer and Trade reported during 11:00 to 14:30 IST are not considered in the index calculation
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