SteelMint’s daily steel billet index is assessed at INR 41,600/tonne (t) (-INR 100) exw-Raipur on 4 Sept’21.
About 1,250 t of transactions in billets were recorded by SteelMint today against 2,520 t on 3 Sept.
The index continues the downtrend as buyers have turned cautious, given the recent sharp reduction in iron ore prices announced by NMDC. Uncertain trends seem to be prevailing in the market as many participants believe that steel prices are likely to drop further.
However, others are of the view that falling iron ore prices will have no significant impact, as sponge iron supplies are already tight and prices have drifted down already.
- 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) – Two trades were recorded in the 11:30 am to 3:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. Out of which, one trade was recorded at INR 41,700/t, and one deal at INR 41,400/t. The average price of these two transactions was INR 41,532/t and given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Eighteen offers reported in the trading window and considered as T2 inputs. The average price of these eighteen was INR 41,679/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 41,606/t, rounded to INR 41,600/t exw.
Click for detailed methodology
T1: Trade
T2: Offer/Bid/Indicative
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