SteelMint’s daily steel billet index is assessed at INR 42,900/tonne (t) (- INR 800/t) exw-Raipur on 5 Jan’22.
About 3,000 t of transactions in billets were recorded by SteelMint today against 3,150 t on 4 Jan.
The index edged down on persistent weak demand and lack of confidence among market participants as to whether the market would sustain.
Spot buying interest remained poor in major markets, including Raipur.
Rationale –
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 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 42,800/t, and one deal each at INR 43,000/t, INR 42,950/t, and INR 42,900/t. The average price of these six transactions was INR 42,833/t and given a 50% weightage in the final price calculation. Apart from this two trades each at INR 43,000/t, and INR 43,300/t were also recorded at 12:00 pm and 1:00 pm but was excluded due to timing.
- 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 42,917/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 42,875/t, rounded to INR 42,900/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
.jpg)
Leave a Reply