SteelMint’s daily steel billet index is assessed at INR 56,900/tonne (t) (+INR 900) exw Raipur on 29 April, 2022.
About 2,700 tonnes (t) of transactions in billets were recorded by SteelMint today as against 4,000 t on 28 April.
The index remained supported due to the prevailing supply shortage on power outages along with surging steel prices in the northern region, especially Punjab.
However, spot demand for billets was limited today as buyers seemed cautious about purchases on higher offers. Hence, trade volumes narrowed down on a d-o-d basis.
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) – Four trades in the range of INR 56,500-57,000/t were recorded during the 2:30 pm to 5:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 56,862/t which is given a 50% weightage in the final price calculation. Apart from this one trade at INR 57,000/t was also recorded at 1:02 pm, but was excluded due to timing.
- Other Price Indicators – bids/offers/indicative (T2) – Fourteen offers reported in the trading window and considered as T2 inputs. The average price of these fourteen was INR 56,925/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 56,893/t, rounded to INR 56,900/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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