SteelMint’s daily steel billet index was assessed at INR 51,500/tonne (t) (+ INR 600) exw-Raipur on 11 July, 2022.
About 4,950 t of transactions were recorded today as against 900 t on 9 July.
The index rebounded on demand recovery in the finished steel products segments, especially in wire rod in Raipur, along with ongoing tight supplies of sponge iron in the local market, which has pushed billet producers to keep offers elevated amidst strengthening steel prices in the northern region.
Sponge iron and wire rod offers in Raipur surged INR 700/t and INR 1,000/t, respectively, d-o-d, on 11 July.
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) – Five trades at INR 51,300-51,750/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 51,475/t which is given a 50% weightage in the final price calculation. Apart from this one trade at INR 51,200/t was also recorded at 12:17 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 51,500/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 51,488/t, rounded to INR 51,500/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
Leave a Reply