SteelMint’s daily steel billet index is assessed at INR 51,600/tonne (t) (+INR 2,000) exw Raipur on 28 Feb’22.
About 800 t of transactions in billets were recorded by SteelMint today as against 2,900 t on 26 February.
The index rose with producers keeping prices higher, citing higher coal and raw material prices along with limited availability. Amidst the bullish outlook, prices are trending higher. However, demand continues to remain moderate, SteelMint notes.
In addition, the price movements were highly influenced by the active participation of resellers, especially in central and north India.
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) – One trade was recorded in the 2:30 pm to 5:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The one trade was recorded at INR 51,600/t. The average price of this one transaction was INR 51,600/t and given a 50% weightage in the final price calculation. Apart from this two trades each at INR 52,000/t, and INR 51,700/t were also recorded at 12:30 pm but was excluded due to timing.
- Other Price Indicators – bids/offers/indicative (T2) – Thirteen offers reported in the trading window and considered as T2 inputs. The average price of these thirteen was INR 51,638/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 51,619/t, rounded to INR 51,600/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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