SteelMint’s daily steel billet index was assessed at INR 51,450/tonne (t) (- INR 50) exw – Raipur on 12 July, 2022.
About 2,500 t of transactions were recorded today as against 4,950 t on 11 July.
The index fell slightly on account of limited enquiries following a fall in spot trade amid decline in prices in the northern region.
Finished steel demand also weakened today as SteelMint recorded nearly 1,900 t of wire rods trade today, as against 6,000 t, on 11 July.
Participants are expecting, the billet makers may keep prices strong over higher sponge iron prices on seasonal tight supplies.
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 at INR 51,400-51,800/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 51,443/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Twelve offers reported in the trading window and considered as T2 inputs. The average price of these twelve was INR 51,488/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 51,466/t, rounded to INR 51,450/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
Leave a Reply