SteelMint’s daily steel billet index is assessed at INR 41,900/tonne (t) (-INR 300) exw-Raipur on 18 Dec’21.
About 850 t of transactions in billets were recorded by SteelMint today against 1,900 t on 17 Dec.
The index fell further on account of weak demand following poor offtake of finished steel products amidst uncertain price movements in the major locations of the country. As a result, buyers opted to wait and watch rather than taking positions, which led to spot trading hitting slowing down over the past couple of days.
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%.
Rationale –
- 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 which, one trade was recorded at INR 42,200/t, and one deal at INR 41,800/t. The average price of these two transactions was INR 41,941/t and given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Fourteen offers reported in the trading window and considered as T2 inputs. The average price of these fourteen was INR 41,900/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 41,921/t, rounded to INR 41,900/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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