SteelMint’s daily steel billet index is assessed at INR 56,000/tonne (t) (-INR 100) exw-Raipur on 2 May 2022.
About 6,500 tonnes (t) of transactions in billets were recorded by SteelMint today as against 1,200 t on 30 April.
The billet index fell marginally on expected ease of supply in the spot market with resumption of power supply since yesterday. At the same time, with rolling mills resuming operations, billet consumption as well as demand also increased. The standalone re-rollers, who had withheld billet bookings, have started taking positions, sources informed SteelMint.
Market participants said that with easing power supply, billet prices are likely to remain volatile and demand active but it will more depend on lifting of finished steel products.
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 55,800-56,100/t were recorded during the 02:30 pm to 5:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 55,980/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Five offers reported in the trading window and considered as T2 inputs. The average price of these five was INR 56,020/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 56,000/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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