SteelMint’s daily steel billet index is assessed at INR 53,000/tonne (t) (-INR 200) exw-Raipur on 13 May 2022.
About 2,150 t of transactions in billets were recorded by SteelMint today as against 3,300 t on 12 May.
The index moved down as buying interest remained limited along with lower bids due to poor demand in finished steel products. Thus, this has not only put pressure on billet prices but also led to the decline in spot trades.
Looking at sluggish global trends amidst sufficient stocks, market sources expect semi-finished steel prices to remain under pressure, if demand for finished steel products remains low.
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 53,000-53,150/t were recorded from 2:30 pm to 5:30 pm SteelMint trading window and were considered as T1 inputs for final price calculation. The average of these transactions was INR 53,058/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Sixteen offers were reported in the trading window and were considered as T2 inputs. The average price of these sixteen offers was INR 52,990/t and was given a 50% weightage in the final price calculation.
The final price for billet exw-Raipur was at INR 53,024/t, rounded to INR 53,000/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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