SteelMint’s daily steel billet index is assessed at INR 54,000/tonne (t) (-INR 400) exw Raipur on 9 Apr’22.
About 1,320 t of transactions in billets were recorded by SteelMint today as against 5,030 t on 8 April.
The index fell to a one-month low as buyers continued to remain inactive and quoted bids lower on account of the decline in offers due to poor offtake of finished steel products.
Due to fears of an uncertain price correction spot trades continue to remain weak. Sources said that trades will regain momentum once prices find stability.
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 11:30 am to 3:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. Out of which one trade was recorded at INR 54,600/t, and one deal each at INR 54,500/t, INR 54,000/t, and INR 53,950/t. The average price of these four transactions was INR 53,976/t and 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 54,050/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 54,013/t, rounded to INR 54,000/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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