SteelMint’s daily steel billet index is assessed at INR 46,900/tonne (t) (- INR 550) exw-Raipur on 23 July, 2022.
About 1,150 t of transactions were recorded today as against 3,000 t on 22 July.
The index moved down on limited enquiries with significant price correction in the northern region. As a result, trends turned sluggish and spot trades remained slow.
In addition, sources said that some major rebar mills are temporarily curtailing their output to maintain supply chain balance. This is also a key factor behind falling billet spot trades in the central region, especially in Raipur.
SteelMint’s daily price assessment for rebar fell by INR 200/t, wire rod by INR 600/t and sponge iron declined by INR 400-500/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) – Four trades at INR 46,800-47,000/t were recorded during the 11:30 am to 3:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 46,922/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Nine offers reported in the trading window and considered as T2 inputs. The average price of these nine was INR 46,914/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 46,918/t, rounded to INR 46,900/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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