SteelMint’s daily steel billet index is assessed at INR 47,750/tonne (t) (-450) exw Raipur on 9 Feb’22.
About 4,100 t of transactions in billets were recorded by SteelMint today against 2,300 t on 8 Feb.
The index fell on account of lower bids following decline in finished steel prices amid the overall downtrend in prices in Punjab, north India. Spot trades dwindled as a result of aggressive selling by a few manufacturers.
The major buyers remained cautious amid unclear market trends, holding their bids, opting to wait and watch instead, 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) – Five 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 47,800/t, two deals at INR 47,500/t and one deal at INR 47,650/t. The average price of these five transactions was INR 47,742/t and given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Ten offers reported in the trading window and considered as T2 inputs. The average price of these ten was INR 47,800/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 47,771/t, rounded to INR 47,750/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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