SteelMint’s daily steel billet index was assessed at INR 47,500/tonne (t) (+ INR 150/t) exw-Raipur on 2 September, 2022.
About 2,400 t of transactions were recorded today as against 1,550 t on 1 September.
Although the index moved up, spot trades remained low with only average trade volumes being recorded. Weak finished steel sales was the key factor which impacted billet demand as prices remained under pressure in Raipur compared to price movements in other locations i.e. the north-east region.
SteelMint’s daily price assessment of rebar, wire rod and sponge iron remained stable today in Raipur despite the surge in billet prices.
About 600 t of transactions in wire rod was recorded today as against 4,200 t yesterday, while the rebar trade volume remained unchanged d-o-d at 2,200 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) – Five trades at INR 47,500/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 47,500/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Nine offers reported in the trading window and considered as T2 inputs. The average price of these nine was INR 47,492/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 47,496/t, rounded to INR 47,500/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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