SteelMint’s daily steel billet index was assessed at INR 48,300/tonne (t) (- INR 350/t) exw-Raipur on 23 August, 2022.
About 4,900 t of transactions were recorded today as against 900 t on 22 August.
Even as the index fell, spot trades improved d-o-d as finished steel demand recovers after the price uptick in the northern region.
Soon after this, buyers started taking positions as they were also short of raw material stocks and offers rose during the second half, sources informed SteelMint.
SteelMint’s daily price assessment of wire rods and rebars fell by INR 300/t each while sponge iron prices dropped by INR 200-300/t in Raipur today.
However, spot trades of finished steel improved as about 3,200 t of transactions in wire rods were recorded in Raipur today as against 1,150 t yesterday. Also, 5,500 t rebar deals were confirmed against 1,200 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) – Twelve 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 48,238/t which is given a 50% weightage in the final price calculation.
- 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 48,319/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 48,279/t, rounded to INR 48,300/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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