SteelMint’s daily steel billet index is assessed at INR 48,900/tonne (t) (+INR 1,200) exw Raipur on 29 Jan’22.
About 2,300 t of transactions in billets were recorded by SteelMint today against 4,190 t on 28 Jan.
The index climbed higher on higher offers by suppliers on rumours of a halt in coal supply to steel mills, However, spot trading in billets fell as higher offers made buyers cautious about procuring material. A majority of buyers opted to wait and watch amidst limited enquiries for finished steel products.
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 were recorded in the 11:30 am to 3:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. Out of these one deal was recorded at INR 49,100/t, and the other at INR 49,000/t. The average price of these two transactions was INR 49,035/t and given 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) –Seventeen offers were reported in this trading window and considered as T2 inputs. The average price of these 17 was INR 48,806/t and given 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 48,921/t, rounded to INR 48,900/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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