SteelMint’s daily steel billet index was assessed at INR 46,700/tonne (t) (- INR 200) exw-Raipur on 20 June 2022.
About 4,450 tonnes (t) of transactions in billets were recorded by SteelMint today as against 2,300 t on 18 June.
The index fell further on account of low bids. However, due to the ongoing supply shortage the pace of price decline in central India was slower compared to the other major markets where billet prices fell by around INR 500/t today.
Demand for finished steel products was weak today compared to last week. Hence, market participants are assuming that if enquiries dry up gradually, billet prices may fall slightly depending upon supply movement in the market.
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 in the range of INR 46,600-47,000/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 46,700/t which is given a 50% weightage in the final price calculation. Apart from this one trade at INR 47,000/t was also recorded at 12:30 pm, but was excluded due to timing.
- Other Price Indicators – bids/offers/indicative (T2) – Seven offers reported in the trading window and considered as T2 inputs. The average price of these seven was INR 46,708/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 46,704/t, rounded to INR 46,700/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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