SteelMint’s daily steel billet index is assessed at INR 41,500/tonne (t) (+INR 900) exw-Raipur on 9 Sept’21.
About 4,990 t of transactions in steel billet were recorded today against 3,525 t on 8 Sept.
The index rose sharply following improvement in trades as well as bids which had remained low earlier. Sources reported that with the price rally in the northern region, mainly Punjab, suppliers in the central region chose to keep prices strong. Overall, trading picked up today, SteelMint notes.
It has been further learnt that sponge iron supply in central India is likely to remain affected for a few days as a couple of major plants in Raigarh as well as Odisha have reportedly declared kiln maintenance shutdowns for around 10 days.
As a result, daily production loss from each plant is estimated at around 1,100-1,200 t. Sponge supply tightness is likely to support billet prices, sources informed.
- 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) – Eight trades were recorded in the 2:30 pm to 5:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. Out of which four trades were recorded at INR 41,400/t, and two deals each at INR 41,500/t and INR 41,300/t. The average price of these eight transactions was INR 41,452/t and 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 41,511/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 41,482/t, rounded to INR 41,500/t exw.
Click for detailed methodology
T1: Trade
T2: Offer/Bid/Indicative
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