SteelMint’s daily steel billet index is assessed at INR 43,300/tonne (t) (-INR 150/t) exw-Raipur on 5 Aug’21.
About 1,600 t of transactions in steel billets were recorded today as against 2,350 t on 4 Aug.
The index remains volatile following limited demand as well low supply in the spot market. Market participants are of the view that billet prices should not fall further due to high sponge iron prices along with low margins of billet producers. These factors have collectively kept billet demand subdued since the last few days.
- 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) – Four 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 three trades were recorded at INR 43,300/t, and one deal at INR 43,400/t. The average price of these four transactions was INR 43,313/t and given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Eight offers reported in the trading window and considered as T2 inputs. The average price of these eight was INR 43,329/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 43,321/t, rounded to INR 43,300/t exw.
Click for detailed methodology
T1: Trade
T2: Offer/Bid/Indicative
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