SteelMint’s daily steel billet index is assessed at INR 56,600/tonne (t) (-INR 200) exw Raipur on 4 Apr’22.
About 3,060 t of transactions in billets were recorded by SteelMint today as against 1,900 t on 2 April.
The index dropped further on account of need-based demand as finished steel demand remained poor in the spot market, which kept buyers away from taking positions amidst unclear market direction.
Anticipation of a decline in sponge iron offers in the coming days also indicates that buyers are hopeful of a drop in billet offers, although production has been impacted due to power shortage.
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 57,000/t, two deals at INR 56,700/t, and one deal at INR 56,400/t. The average price of these five transactions was INR 56,679/t and given a 50% weightage in the final price calculation. Apart from this one trade at INR 57,000/t was also recorded at 2:00 pm but was excluded due to timing.
- Other Price Indicators – bids/offers/indicative (T2) – Sixteen offers reported in the trading window and considered as T2 inputs. The average price of these sixteen was INR 56,567/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 56,623/t, rounded to INR 56,600/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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