SteelMint’s daily steel billet index is assessed at INR 42,200/tonne (t) (-INR 200) exw-Raipur on 17 Dec’21.
About 1,900 t of transactions in billets were recorded by SteelMint today against 4,050 t on 16 Dec.
The index remained volatile following subuded demand and limited enquiries in finished steel products. Hence billet manufacturers are maintaining their offers to conclude deals.
Amidst limited finished steel demand, the trade discounts in finished steel , especially in wire rod, increased today from the resellers. However, demand remained measured.
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%.
Rationale –
- Transactions (T1) – Seven 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 42,200/t, and one deal each at INR 42,400/t, INR 42,350/t, INR 42,300/t, INR 42,100/t, and INR 42,000/t. The average price of these seven transactions was INR 42,206/t and given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Twelve offers reported in the trading window and considered as T2 inputs. The average price of these twelve was INR 42,225/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 42,215/t, rounded to INR 42,200/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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