SteelMint’s daily steel billet index is assessed at INR 58,200/tonne (t) (-INR 300) exw Raipur on 19 Apr’22.
About 3,400 t of transactions in billets were recorded by SteelMint today as against 1,300 t on 18 Apr.
The index fell further due to lower bids on account of poor off take in finished steel products despite increasing trade discounts.
Today, resellers in Raipur further increased trade discounts in wire rods to around INR 2,500/t. However, demand continued to remain sluggish which put pressure on billet prices along with decline in prices in the northern region.
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) – Four 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 three trades were recorded at INR 58,200/t, and one deal at INR 58,300/t. The average price of these four transactions was INR 58,210/t and given a 50% weightage in the final price calculation. Apart from this one trade at INR 58,450/t was also recorded at 2:00 pm, but was excluded due to timing.
- Other Price Indicators – bids/offers/indicative (T2) – Sixteen offers reported in the trading window and considered as T2 inputs. The average price of these sixteen was INR 58,277/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 58,219/t, rounded to INR 58,200/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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