SteelMint’s daily steel billet index is assessed at INR 45,000/tonne (t) (-INR 1,050) exw-Raipur on 31 May 2022.
About 3,100 tonnes (t) of transactions in billets were recorded today as against 2,950 t on 30 May.
The index fell on account of limited demand and poor enquiries for finished steel products. Bids continued to remain low, resulting in a decline in prices.
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) – Six trades in the range of INR 44,800-45,200/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 44,973/t which is given a 50% weightage in the final price calculation. Apart from this one trade at INR 45,200/t was also recorded at 1:43 pm, but was excluded due to timing.
- Other Price Indicators – bids/offers/indicative (T2) – Sixteen offers reported in the trading window and considered as T2 inputs. The average price of these sixteen was INR 45,025/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 44,999/t, rounded to INR 45,000/t exw.
Click for detailed methodology
T1 – Trade, T2 – offer/bid/indicative, *Normalized price as per methodology
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