SteelMint’s daily steel billet index is assessed at INR 48,300/tonne (t) (-INR 350) exw Raipur on 3 Feb’22.
About 2,200 t of transactions in billets were recorded by SteelMint today against 4,680 t on 2 Feb.
The index fell due to decline in prices in the northern region which impacted spot trades and trade volumes.
However, there is a shortage of billets for prompt delivery and a majority of suppliers are shying away from bulk orders. It is expected that with improvement in demand prices may rebound, with no selling pressure from the suppliers.
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 48,300/t, and three deals at INR 48,200/t. The average price of these six transactions was INR 48,300/t and given a 50% weightage in the final price calculation. Apart from this one trade at INR 48,500/t was also recorded at 2:00 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 48,329/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 48,314/t, rounded to INR 48,300/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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