SteelMint’s daily steel billet index was assessed at INR 50,000/tonne (t) (+ INR 500/t) exw-Raipur on 16 August, 2022.
About 6,020 t of billet transactions were recorded today as against 700 t on 13 August.
The index rebounded following demand recovery as some major mills ran out of raw materials. Hence spot trades of billet and sponge iron improved significantly in today’s trades.
However, finished steel sales remained moderate in central India and bids inched lower by INR 300-500/t compared to offers floated by the suppliers.
SteelMint’s daily price assessment for rebar rose by INR 300/t, while wire rod and sponge iron offers gained by INR 600/t in Raipur today.
SteelMint recorded about 1,200 t of wire rod transactions and about 1,700 t of rebar deals were confirmed in Raipur 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) – Seven trades at INR 50,000-50,200/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 50,053/t which is given a 50% weightage in the final price calculation. Apart from this two trades INR 50,150 & INR 50,300 recorded at 12:57 & 1:57 were 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 49,979/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 50,016/t, rounded to INR 50,000/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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