SteelMint’s daily steel billet index is assessed at INR 47,700/tonne (t) (-INR 900) exw-Raipur on 20 Oct’21.
About 2,400 t of transactions in billets were recorded by SteelMint today against 1,720 t recorded on 19 Oct.
The index fell continuously in the wake of persistent sluggish demand in the spot market following poor offtake of finished steel products on floated offers.
As a result, Raipur wire rod base offers fell by INR 1,000/t, d-o-d. The trade discounts through the suppliers remained high and were assessed around INR 2,000/t as against INR 2,000-2,500/t yesterday.
- 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 two trades were recorded at INR 47,700/t, and one deal each at INR 48,000/t, and INR 47,500/t. The average price of these four transactions was INR 47,679/t and given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Ten offers reported in the trading window and considered as T2 inputs. The average price of these ten was INR 47,761/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 47,720/t, rounded to INR 47,700/t exw.
Click for detailed methodology
T1: Trade
T2: Offer/Bid/Indicative
Leave a Reply