SteelMint’s daily steel billet index is assessed at INR 48,600/tonne (t) (-INR 400) exw-Raipur on 19 Oct’21.
About 1,720 t of transactions in billets were recorded by SteelMint today against 4,300 t recorded on 18 Oct.
The index fell further on account of limited buying interest amidst lower bids due to weak finished steel demand. Today trade discounts in wire rod by Raipur-based suppliers increased to INR 2,000-2,500/t as against INR 1,500-1,800/t yesterday. This has impacted spot billet demand and bids edged lower by INR 300-400/t compared to offers.
- 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) – Five 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 48,500/t, and one deal each at INR 49,000/t, INR 48,700/t, and INR 48,600/t. The average price of these five transactions was INR 48,546/t and given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Nine offers reported in the trading window and considered as T2 inputs. The average price of these nine was INR 48,671/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 48,609/t, rounded to INR 48,600/t exw.
Click for detailed methodology
T1: Trade
T2: Offer/Bid/Indicative
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