SteelMint’s daily steel billet index is assessed at INR 54,600/tonne (t) (-INR 500) exw-Raipur on 4 May 2022.
About 5,400 tonnes (t) of transactions in billets were recorded by SteelMint today as against 2,400 t on 3 May.
The billet index dropped further following price correction in the northern region. However, on lower offers spot demand improved for both sponge iron and billets in Raipur. While demand for finished steel products continued to remain sluggish, 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 in the range of INR 54,500-54,900/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 54,558/t which is given a 50% weightage in the final price calculation. Apart from this one trade at INR 54,700/t was also recorded at 2:08 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 54,650/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 54,604/t, rounded to INR 54,600/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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