SteelMint’s daily steel billet index was assessed at INR 48,550/tonne (t) (+ INR 250/t) exw-Raipur on 24 August, 2022.
About 3,600 t of transactions were recorded today as against 4,900 t on 23 August.
Although the index rose, demand turned slow on rising offers as spot trade volumes fell today compared to yesterday followed by dull finished steel sales, especially rebar in central India.
Amidst the volatility in offers in the northern region, the major buyers remained cautious about taking positions which led to dull trades, sources informed SteelMint.
SteelMint’s daily price assessment of sponge iron, rebar and wire rod each rose by INR 300/t in Raipur today.
About 3,200 t of transactions in wire rod were recorded in Raipur, stable as against yesterday. However, rebar trades fell to around 1,800 t today as against 5,500 t 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) – Six trades at INR 48,500-48,750/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 48,571/t which is given a 50% weightage in the final price calculation. Apart from this one trade of INR 48,700 recorded at 1:47 pm was excluded due to timing.
- Other Price Indicators – bids/offers/indicative (T2) – Twelve offers reported in the trading window and considered as T2 inputs. The average price of these twelve was INR 48,559/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 48,565/t, rounded to INR 48,550/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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