SteelMint’s daily steel billet index is assessed at INR 48,100/tonne (t) (+ INR 100) exw-Raipur on 20 July, 2022.
About 1,700 t of transactions were recorded today as against 800 t on 19 July.
The index rose slightly on account of several deals happening in the northern region in the late trading hours yesterday. Therefore, suppliers quoted prices higher during the first half of today’s trading; however, with limited response from buyers, offers softened during the late hours today.
Market participants are of the view that semis prices are unlikely to find support as supply exceeds demand at current offers. Hence, prices are expected to remain under pressure, if demand continues to remain sluggish.
SteelMint’s daily price assessment for rebar fell by INR 200/t. While wire rod prices remained stable, sponge iron prices fell by INR 300/t in Raipur.
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 48,000-48,300/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 48,147/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Thirteen offers reported in the trading window and considered as T2 inputs. The average price of these thirteen was INR 48,091/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 48,119/t, rounded to INR 48,100/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
Leave a Reply