SteelMint’s daily steel billet index was assessed at INR 47,300/tonne (t) (+ INR 700) exw-Raipur on 22 June, 2022.
About 5,100 tonnes (t) of transactions in billets were recorded today as against 4,000 t on 21 June.
The index rebounded on improved spot trades along with supply shortage of billets in the spot market, which prompted sellers to keep offers higher.
South African coal prices have spurted which supported price trends in the domestic market. Spot trades for both sponge iron and billets improved today in central 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) – Nine trades in the range of INR 47,200-47,400/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 47,241/t which is given a 50% weightage in the final price calculation. Apart from this one trade at INR 47,000/t was also recorded at 12:40 pm, but was excluded due to timing.
- Other Price Indicators – bids/offers/indicative (T2) – Eight offers reported in the trading window and considered as T2 inputs. The average price of these eight was INR 47,375/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 47,308/t, rounded to INR 47,300/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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