SteelMint’s daily billet index is assessed at INR 42,300/t (+150/t), exw Raipur, on 18 Jun’21. Around 4,380 t of transactions in steel billet were recorded today against 3,000 t yesterday.
The index rebounded as local steel plants (Mini Steel Plant Association) in Raipur decided to raise prices in order to improve conversion spread and, to that effect, fix prices so as not to sell billet below INR 43,000/t exw.
Following this move, suppliers based outside Raipur were quick to pounce on the opportunity and happened to collect orders at a slightly higher price compared to that prevailing yesterday, although trade remained on a low key.
- 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) – Nine trades were recorded in the 2:30 pm to 5:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. Out of which, four trades were recorded at INR 42,300/t, two deals at INR 42,200/t and one deal each at INR 42,500/t, INR 42,400/t and INR 42,100/t. The average price of these nine transactions was INR 42,279/t and given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Fourteen offers reported in the trading window and considered as T2 inputs. The average price of these fourteen was INR 42,369/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 42,324/t, rounded to INR 42,300/t exw.
Click for detailed methodology
T1: Trade
T2: Offer/Bid/Indicative
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