SteelMint’s daily steel billet index is assessed at INR 50,350/tonne (t) (+ INR 100/t) exw-Raipur on 2 August, 2022.
About 6,500 t of billet transactions were recorded today as against 7,850 t on 1 August.
The index remained strong amid active demand on rising steel prices in the northern regions.
However, in terms of finished steel sales, it remained moderate in major producing regions as buyers resisted purchases at higher offers floated by mills.
SteelMint’s daily price assessment for rebars and sponge iron rose slightly by INR 100/t in Raipur while wire rods prices fell by INR 300/t.
About 1,700 t of transactions in wire rods and 2,100 t in rebars were recorded in Raipur today. These trade volumes dropped by 1,200-1,500 t compared to yesterday.
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) – Ten trades at INR 49,950-50,500/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 50,264/t which is given a 50% weightage in the final price calculation. Apart from this one trade of INR 50,100 recorded at 12:44 pm was excluded due to timing.
- Other Price Indicators – bids/offers/indicative (T2) – Ten offers reported in the trading window and considered as T2 inputs. The average price of these ten was INR 50,400/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 50,332/t, rounded to INR 50,350/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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