SteelMint’s daily steel billet index is assessed at INR 44,900/tonne (t) (- INR 100) exw-Raipur on 7 June 2022.
About 4,170 tonnes (t) of transactions in billets were recorded today as against 4,800 t on 6 June.
The index trended down on account of lower bids followed by volatile prices in the north India. This kept buyers cautious and they procured material as per immediate necessity and on lower offers. Thus, prices continued to soften.
Further, there is lack of confidence in the market about a rebound in offers soon and this kept trades limited despite lower offers.
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 44,800-45,100/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 45,004/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Seventeen offers reported in the trading window and considered as T2 inputs. The average price of these seventeen was INR 44,843/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 44,924/t, rounded to INR 44,900/t exw.
Click for detailed methodology
T1 – Trade, T2 – offer/bid/indicative, *Normalized price as per methodology
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