SteelMint’s daily steel billet index is assessed at INR 56,200/tonne (t) (+INR 900) exw Raipur on 4 Mar’22.
About 6,200 t of transactions in billets were recorded by SteelMint today as against 7,150 t on 3 March.
Higher sponge iron prices due to a sharp surge in coal and pellet prices kept billet prices elevated in the domestic market.
In view of these factors, buyers are also active in booking material even though prices are trending at an all-time high level.
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 56,200/t, and one deal each at INR 56,450/t, INR 56,150/t, and INR 56,000/t. The average price of these five transactions was INR 56,149/t and given a 50% weightage in the final price calculation. Apart from this one trade at INR 56,000/t was also recorded at 12:00 pm but was excluded due to timing.
- Other Price Indicators – bids/offers/indicative (T2) – Eight offers reported in the trading window and considered as T2 inputs. The average price of these eight was INR 56,260/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 56,205/t, rounded to INR 56,200/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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