SteelMint’s daily steel billet index is assessed at INR 48,650/tonne (t) (+INR 50) exw Raipur on 2 Feb’22.
About 4,680 t of transactions in billets were recorded by SteelMint today against 2,950 t on 1 Feb.
Prices rose following improvement in spot trades on account of a surge in prices in Punjab, north India.
However, a majority of market participants held their offers and bids amidst unclear market trends, with finished steel demand remaining limited amid surging raw materials prices. Thus, bulk buying was kept on hold today.
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) – Twelve 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 these four trades were recorded at INR 48,800/t, three deals at INR 48,500/t, two deals each at INR 48,700/t, and INR 48,600/t and one deal at INR 48,650/t. The average price of these 12 transactions was INR 48,642/t and given 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) –Six offers reported in the trading window and considered as T2 inputs. The average price of these six was INR 48,700/t and given 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 48,671/t, rounded off to INR 48,650/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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