SteelMint’s daily steel billet index is assessed at INR 46,400/tonne (t) (-INR 1,200) exw-Raipur on 24 May 2022.
About 1,420 tonnes (t) of billets transactions were recorded today as against 2,600 t on 23 May.
The index plummeted on account of lower bids due to poor offtake of finished steel products, which exerted pressure on billet prices across regions. As of now, most of the participants have adopted a wait-and-watch approach.
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) – Four trades in the range of INR 46,200-46,400/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 46,289/t which is given a 50% weightage in the final price calculation. Apart from this one trade at INR 46,300/t was also recorded at 1:00 pm, but was excluded due to timing.
- Other Price Indicators – bids/offers/indicative (T2) – Ten offers reported in the trading window and considered as T2 inputs. The average price of these ten was INR 46,522/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 46,406/t, rounded to INR 46,400/t exw.
Click for detailed methodology
T1 – Trade, T2 – offer/bid/indicative, *Normalized price as per methodology
Leave a Reply