SteelMint’s daily steel billet index is assessed at INR 47,100/tonne (t) (+400) exw Raipur on 25 Jan’22.
About 5,650 t of transactions in billets were recorded by SteelMint today against 4,800 t on 24 Jan.
The index moved north following improvement in demand as well as higher offers by suppliers on strengthening sponge iron and raw materials prices.
Further, a significant rise in offers in Punjab, north India prompted producers to keep prices high across regions, SteelMint notes.
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) – Four 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 47,000/t, and one deal each at INR 47,300/t, and INR 47,150/t. The average price of these four transactions was INR 47,101/t and given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Thirteen offers reported in the trading window and considered as T2 inputs. The average price of these thirteen was INR 47,114/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 47,107/t, rounded to INR 47,100/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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