SteelMint’s daily steel billet index was assessed at INR 45,000/tonne (t) (- INR 200) exw-Raipur on 6 June 2022.
About 4,800 tonnes (t) of transactions in billets were recorded today as against 2,250 t on 4 June.
The index dropped further due to lower bids on prevailing sluggish trends. The recent sharp reduction in iron ore prices by India’s largest miner NMDC has given rise to sluggish trends in the market and hence buyers are floating bids lower while hoping for further softening in offers. This ultimately pulled spot billet prices lower.
Further, with the approaching monsoons, trades are likely to remain average, sources informed SteelMint.
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) – Seven trades in the range of INR 45,000-45,300/t were recorded during the 2:30 pm to 05:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 45,024/t which is given a 50% weightage in the final price calculation. Apart from this two trades at INR 45,300/t, and INR 45,200/t were also recorded at 2:13 pm, and 5:41 pm but was excluded due to timing.
- Other Price Indicators – bids/offers/indicative (T2) – Eighteen offers reported in the trading window and considered as T2 inputs. The average price of these eighteen was INR 45,014/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 45,019/t, rounded to INR 45,000/t exw.
Click for detailed methodology
T1 – Trade, T2 – offer/bid/indicative, *Normalized price as per methodology
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