SteelMint’s daily steel billet index is assessed at INR 43,900/tonne (t) (=) exw Raipur on 8 Jan’22.
About 2,440 t of transactions in billets were recorded by SteelMint today against 5,040 t on 7 Jan.
After a significant surge, the index attained stability as trades were limited today due to lack of clarity in market trends during the weekend.
Rising coal prices and sufficient orders with manufacturers have propelled offers. However, surging COVID cases kept buyers cautious as spot trades dried up across regions.
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 11:30 am to 3:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. Out of which two trades were recorded at INR 43,900/t, two deals at INR 43,800/t, and one deal each at INR 44,000/t, and INR 43,750/t. The average price of these six transactions was INR 43,869/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 43,967/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 43,918/t, rounded to INR 43,900/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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