SteelMint’s daily steel billet index is assessed at INR 56,000/tonnes (t) (-INR 1,000) exw Raipur on 14 Mar’22.
About 1,500 t of transactions in billets were recorded by SteelMint today as against 1,000 t on 12 Mar’22.
The index remained downtrend on account sluggish demand in finished steel products and continued drop in prices especially in the Punjab market.
A Raigarh-based plant made aggressive sales, slashing offers by INR 1,000-1,500/t, d-o-d which caused a heavy drop in Raipur billet market. Hence, other suppliers in Raipur were also forced to cut prices to improve buying, which led to a sharp price correction.
Domestic trades are likely to remain disturbed this week due to festivity, 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 are given a weightage of the balance 50%.
Transactions (T1) – Three 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 these two trades were recorded at INR 55,700/t, and the other at INR 56,000/t. The average price of these three transactions was INR 55,760/t and were given a 50% weightage in the final price calculation.
Other Price Indicators – bids/offers/indicative (T2) – Twelve offers were reported in the trading window and were considered as T2 inputs. The average price of these twelve offers was INR 56,283/t and was given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 56,022/t, rounded to INR 56,000/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalised price as per methodology
.jpg)
Leave a Reply