SteelMint’s daily steel billet index was assessed at INR 48,000/tonne (t) (+ INR 700) exw-Raipur on 23 June, 2022.
About 3,100 tonnes (t) of transactions in billets were recorded today as against 5,100 t on 22 June.
The index rose further on account of ongoing tight supplies, with a couple of major plants delaying dispatches along with limited supply of billets by a few hot charging plants.
In addition, another key factor was spurt in steel prices in the northern region, which prompted Raipur steelmakers to keep offers higher even though enquiries slowed down on prevailing offers.
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 47,800-48,000/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 47,967/t which is given a 50% weightage in the final price calculation. Apart from this one trade at INR 48,000/t was also recorded at 1:37 pm, but was excluded due to timing.
- Other Price Indicators – bids/offers/indicative (T2) – Six offers reported in the trading window and considered as T2 inputs. The average price of these six was INR 47,992/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 47,980/t, rounded to INR 48,000/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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