SteelMint’s daily steel billet index is assessed at INR 48,700/tonne (t) (+INR 2,400) exw-Raipur on 11 Oct’21.
About 8,990 t of transactions in billets were recorded by SteelMint today against 4,300 t on 9 Oct.
The index registered a sharp surge on account of renewed buying, with a sufficient number of deals being concluded for finished products, especially wire rod, in the last two-three days. Hence, buying activity remained strong, which influenced producers to keep prices strong.
In addition, another major reason for the price hike is strengthening coal prices, as portside prices of South African RB2 grade coal have increased by up to INR 4,000/t in about a week.
- 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) – Sixteen 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 six trades were recorded at INR 48,700/t, four deals at INR 48,800/t, four deals at INR 48,600/t, and one deal each at INR 49,000/t, and INR 48,750/t. The average price of these sixteen transactions was INR 48,702/t and given a 50% weightage in the final price calculation. Apart from this one trade was recorded at INR 48,500/t at 12:30 pm but was excluded due to timing.
- Other Price Indicators – bids/offers/indicative (T2) – Nine offers reported in the trading window and considered as T2 inputs. The average price of these nine was INR 48,688/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 48,695/t, rounded to INR 48,700/t exw.
Click for detailed methodology
T1: Trade
T2: Offer/Bid/Indicative
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