SteelMint’s daily steel billet index is assessed at INR 49,600/tonne (t) (-INR 700) exw-Raipur on 26 Feb’22.
About 2,900 t of transactions in billets were recorded by SteelMint today as against 1,300 t on 25 February.
The index moved down as bids continued to remain low on account of moderate finished steel demand as well as unclear market trends, with prices of raw materials remaining volatile, especially coal.
Moreover, resellers are actively participating and preferring not to hold stocks. This is also one of the major factors behind volatility in prices. Price movements will depend on global sentiments, 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 11:30 am to 3:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. Out of which two trades were recorded at INR 49,500/t, and one deal each at INR 49,550/t, INR 49,300/t, and INR 49,000/t. The average price of these five transactions was INR 49,534/t and given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Eighteen offers reported in the trading window and considered as T2 inputs. The average price of these eighteen was INR 49,660/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 49,597/t, rounded to INR 49,600/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
Leave a Reply