SteelMint’s daily steel billet index is assessed at INR 48,500/tonne (t) (+INR 250) exw-Raipur on 19 Feb’22.
About 1,700 t of transactions in billets were recorded by SteelMint today against 6,400 t on 18 Feb.
The index rose following the surge in steel prices in the northern region. However, due to rising billet prices in Raipur buying enquiries remained limited amidst expectation of a fall in prices.
Thus spot billet trade volumes were limited today along with disparity in bids and offers as a majority of buyers were willing to book at INR 400-500/t lower compared to the offers quoted by 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) – Five 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 four trades were recorded at INR 48,500/t, and one deal at INR 48,700/t. The average price of these five transactions was INR 48,518/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 48,457/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 48,487/t, rounded to INR 48,500/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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