SteelMint’s daily steel billet index is assessed at INR 43,150/tonne (t) (-INR 150/t) exw-Raipur on 6 Aug’21.
About 4,920 t of transactions in steel billets were recorded today compared with 1,600 t on 5 Aug.
The index drifted downwards even as trade volumes improved more than three-fold. Market participants believe that prices should remain volatile as demand is subdued and the conversion spread (margins) of standalone plants remain below par.
- 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 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 five trades were recorded at INR 43,200/t, two deals at INR 43,000/t, and one deal at INR 43,300/t. The average price of these eight transactions was INR 43,200/t and given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Eight offers reported in the trading window and considered as T2 inputs. The average price of these eight was INR 43,140/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 43,170/t, rounded to INR 43,150/t exw.
Click for detailed methodology
T1: Trade
T2: Offer/Bid/Indicative
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