SteelMint’s daily steel billet index was assessed at INR 48,850/tonne (t) (+ INR 150) exw-Raipur on 18 July, 2022.
About 1,750 t of transactions were recorded today as against 3,200 t on 16 July.
Although the index increased slightly, spot trades remained dull on account of poor offtake of finished steel products, especially rebar.
Rising prices in the northern region prompted billet producers to keep prices high, although limited buying was observed on quoted offers. As a result, spot billet trade volumes remained low today.
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) – Three trades at INR 48,800-49,300/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 48,823/t which is given a 50% weightage in the final price calculation. Apart from this one trade of INR 49,200 recorded at 13:20 pm was excluded due to timing.
- Other Price Indicators – bids/offers/indicative (T2) – Fourteen offers reported in the trading window and considered as T2 inputs. The average price of these fourteen was INR 48,900/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 48,862/t, rounded to INR 48,850/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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