SteelMint’s daily steel billet index was assessed at INR 48,800/tonne (t) (- INR 300/t) exw-Raipur on 20 August, 2022.
About 700 t of transactions were recorded today as against 1,200 t on 19 August.
The index dropped as spot trades remained limited due to sluggish demand for finished steel products as majority of participants remained out of the market on festive holidays. Sources expect trade activity to resume in full swing in the coming week and billet prices will follow the trend of finished steel products.
SteelMint’s daily price assessment for rebars and wire rods fell by INR 200/t each, while prices of sponge iron dropped marginally by INR 100/t 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) – Two trades at INR 48,600-48,800/t were recorded during the 11:30 am to 4:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 48,743/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Eleven offers reported in the trading window and considered as T2 inputs. The average price of these eleven was INR 48,905/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 48,824/t, rounded to INR 48,800/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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