SteelMint’s daily steel billet index is assessed at INR 48,300/tonne (t) (-INR 200) exw-Raipur on 21 Feb’22.
About 3,100 t of transactions in billets were recorded by SteelMint today against 1,700 t on 19 Feb.
The index moved down on account of lower bids, following poor finished steel sales, as per market participants. The bids were reported lower by INR 300-400/t as against offers floated by the suppliers.
Market watchers are expecting billet prices to remain volatile as sponge iron prices remain strong due to sufficient orders & higher coal, pellet prices even while finished steel demand continues to remain moderate on prevailing high offers.
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) – Three 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 one trade was recorded at INR 48,400/t, and one deal each at INR 48,100/t, and INR 48,000/t. The average price of these three transactions was INR 48,340/t and given a 50% weightage in the final price calculation. Apart from this one trade at INR 48,400/t was also recorded at 12:00 pm but was excluded due to timing.
- Other Price Indicators – bids/offers/indicative (T2) –Twelve offers reported in the trading window and considered as T2 inputs. The average price of these 12 was INR 48,289/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 48,314/t, rounded off to INR 48,300/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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