SteelMint’s daily steel billet index is assessed at INR 41,950/tonne (t) (+INR 350) exw-Raipur on 23 Dec’21.
About 5,220 t of transactions in billets were recorded by SteelMint today against 9,820 t on 22 Dec.
The index headed north with continued active demand in the spot market, following strengthening prices of raw materials and sponge iron at major locations in the country.
A slight supply shortage of sponge iron in the Raipur market may result in further strengthening of billet offers in the central region, SteelMint notes.
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) – Ten 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 five trades were recorded at INR 42,000/t, one at INR 41,600/t, one deal at INR 41,900/t and one deal each at INR 41,500/t, INR 42,100/t and INR 41,800/t. The average price of these ten transactions was INR 41,931/t and given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Four offers reported in the trading window and considered as T2 inputs. The average price of these four was INR 41,975/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 41,953/t, rounded to INR 41,950/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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