SteelMint’s daily steel billet index was assessed at INR 46,900/tonne (t) (- INR 100) exw-Raipur on 18 June 2022.
About 2,300 tonnes (t) of transactions in billets were recorded by SteelMint today as against 6,150 t on 17 June.
The index fell slightly despite ongoing supply shortage in the spot market of billets due to lessened sales by a few major plants. The prices fell slightly on account of plummeting prices in the northern region, which influenced a few stockists to deal at lessened prices, however, in line with plants, their offers were in the range of INR 47,000-47,200/t not lessened with this, sources informed SteelMint.
If demands of finished steel remained strong, the billet prices in the spot market less likely to soften, 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) – One trade at INR 46,700/t was recorded during the 11:30 am to 3:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of this one transaction was INR 46,700/t which is given a 50% weightage in the final price calculation. Apart from this one trade at INR 47,100/t was also recorded at 3:48 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 46,911/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 46,911/t, rounded to INR 46,900/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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