SteelMint’s daily steel billet index is assessed at INR 45,900/tonne (t) (-INR 400) exw-Raipur on 30 Oct’21.
About 2,100 t of transactions in billets were recorded by SteelMint today against 5,800 t on 29 Oct.
The index fell on account of limited buying and lower bids resulting from sluggish demand for finished steel products on 30 Oct.
In addition, unclear market trends are resulting in volatility in prices since the few days, as declining coal prices indicate that steel prices are likely to soften in the coming days.
However, market participants told SteelMint that finished steel demand is expected to rebound after the Diwali holidays.
- 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) – Six 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 three trades were recorded at INR 45,800/t, one deal at INR 46,150/t and one deal each at INR 45,700/t & INR 45,900/t. The average price of these six transactions was INR 45,867/t and given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Thirteen offers reported in the trading window and considered as T2 inputs. The average price of these thirteen was INR 45,920/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 45,893/t, rounded to INR 45,900/t exw.
Click for detailed methodology
T1: Trade
T2: Offer/Bid/Indicative
Leave a Reply