SteelMint’s daily steel billet index is assessed at INR 41,500/tonne (t) (-INR 400) exw-Raipur on 20 Dec’21.
About 1,210 t of transactions in billets were recorded by SteelMint today against 850 t on 18 Dec.
Sources informed that billet demand remained sluggish due to poor offtake in the finished steel products segments, especially in the patra and wire rod segments. In addition, declining prices in Punjab, north India, amidst unclear market trends are weighing on steel prices across locations. This has led to a consistent fall in the Raipur billet index.
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) – Five 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 three trades were recorded at INR 41,500/t, and one deal each at INR 41,600/t, and INR 41,450/t. The average price of these five transactions was INR 41,496/t and given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Fifteen offers reported in the trading window and considered as T2 inputs. The average price of these fifteen was INR 41,529/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 41,513/t, rounded to INR 41,500/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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