SteelMint’s daily steel billet index is assessed at INR 53,600/tonne (t) (-INR 900) exw Raipur on 10 May, 2022.
About 2,410 tonnes (t) of transactions in billets were recorded by SteelMint today as against 1,300 t on 9 May.
The index hit the lowest point in a month on account of lower bids amidst aggressive selling by the plants and the resellers due to poor demand for finished steel products, especially rebar and wire rod. A similar price range for billet was last recorded at INR 53,400/t exw Raipur on 12 April.
Sources are expecting that if demand for finished steel products remains weak, prices may record a further decline; however, major price movements will depend on trends in Punjab, north India.
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 53,500-53,700/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 53,633/t which is given a 50% weightage in the final price calculation.
- 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 53,611/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 53,622/t, rounded to INR 53,600/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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