SteelMint’s daily steel billet index is assessed at INR 54,900/tonne (t) (+INR 300) exw-Raipur on 5 May 2022.
About 4,800 tonnes (t) of transactions in billets were recorded by SteelMint today as against 5,400 t on 4 May.
The billet index rebounded after a significant fall in the last few days.
Sources informed to SteelMint that rising prices in the northern region and hope of bottoming out resulted in active participation today. However, if prices rise significantly, buyers may opt to wait and watch as generally finished steel demand slows on higher offers, they added.
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 54,300-55,000/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 54,867/t which is given a 50% weightage in the final price calculation. Apart from this two trades at INR 54,500/t & INR 54,300/t was also recorded at 12:30 & 12:43 pm , but was excluded due to timing.
- Other Price Indicators – bids/offers/indicative (T2) – Eighteen offers reported in the trading window and considered as T2 inputs. The average price of these eighteen was INR 54,893/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 54,880/t, rounded to INR 54,900/t exw
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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