SteelMint’s daily steel billet index is assessed at INR 56,100/tonne (t) (-INR 800) exw Raipur on 30 April, 2022.
About 1,200 tonnes (t) of transactions in billets were recorded by SteelMint today as against 2,700 t on 29 April.
The index plummeted as buyers held their bids looking at higher offers along with poor enquiries for finished steel products throughout the day. Thus, with low buying interest spot trades and prices of billet moved down sharply.
However, despite limited deals today, billet supplies remain tight in the spot market on account of decline in production due to unscheduled power cuts.
The price outlook will depend on power supply and coal price movements, which is unclear for the coming days, 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) – Two trades in the range of INR 56,000-56,200/t were recorded during the 11:30 am to 3:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 56,100/t which is given a 50% weightage in the final price calculation.
- 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 56,108/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 56,104/t, rounded to INR 56,100/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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