SteelMint’s daily steel billet index is assessed at INR 47,900/tonne (t) (+INR 850) exw-Raipur on 16 Feb’22.
About 9,600 t of transactions in billets were recorded by SteelMint today against 4,350 t on 15 Feb.
The index rebounded following the surge in spot trades at over twofold compared with yesterday. With the rise in bids at OMC’s iron ore auction, market trends turned optimistic, with suppliers reporting robust enquiries and prices gaining significantly.
Participants are expecting semis prices to remain strong due to sufficient orders with suppliers. However, finished steel demand is expected to fall on higher offers, SteelMint notes.
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) – 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 two trades were recorded at INR 48,000/t, two deals at INR 47,800/t, and one deal each at INR 48,050/t, INR 47,900/t, INR 47,750/t, and INR 47,200/t. The average price of these eight transactions was INR 47,888/t and given a 50% weightage in the final price calculation. Apart from this one trade at INR 47,600/t was also recorded at 1:00 pm but was excluded due to timing.
- Other Price Indicators – bids/offers/indicative (T2) –Eight offers reported in the trading window and considered as T2 inputs. The average price of these eight was INR 47,850/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 47,869/t, rounded off to INR 47,900/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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