SteelMint’s daily steel billet index is assessed at INR 55,000/tonne (t) (-INR 1,000) exw Raipur on 25 Apr’22.
About 2,800 t of transactions in billets were recorded by SteelMint today as against 1,700 t on 23 Apr.
The index headed south with continued lower bids and poor buying interest across product categories.
A majority of buyers withheld purchases due to the correction in prices of raw materials i.e. pellets and sponge iron (in the range of INR 500-1,200/t) along with the expectation of further softening in offers. This led to poor buying of billets in the spot market and ultimately offers edged lower, SteelMint notes.
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 55,000-55,200/t were recorded during the 2:30 pm to 5:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 55,036/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Nine offers reported in the trading window and considered as T2 inputs. The average price of these nine was INR 54,963/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 54,999/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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