SteelMint’s daily steel billet index is assessed at INR 55,000/tonnes (t) (-INR 1,000) exw Raipur on 15 Mar’22.
About 2,750 t of transactions in billets were recorded by SteelMint today as against 1,500 t on 14 Mar’22.
The index fell further on account of limited bids and buying interest in the first half today. However, in the latter half, bids improved which led to an increase in prices by INR 500/t amid lower offers in the afternoon session. Thus, it is expected that demand recovery may provide support to billets prices in the coming days with stockists taking positions amid optimistic trends globally.
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) – 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 54,800/t, and one deal each at INR 55,100/t, INR 55,000/t, and INR 54,750/t. The average price of these five transactions was INR 54,904/t and given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Eleven offers reported in the trading window and considered as T2 inputs. The average price of these eleven was INR 55,050/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 54,977/t, rounded to INR 55,000/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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