SteelMint’s daily steel billet index is assessed at INR 55,200/tonne (t) (+INR 200) exw-Raipur on 27 April 2022.
About 6,800 tonnes (t) of transactions in billets were recorded by SteelMint today against 5,950 t on 26 April.
The prices rose following improved buying on account of increased power cuts in the industrial belts as well as surging steel prices in the northern region, especially Punjab. Considering these factors, buyers started to take positions on assumptions of lesser scope of major fall, especially in billet prices. This, in turn, led to gains in spot trade volumes.
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) – Five trades in the range of INR 54,500-55,300/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 55,300/t which is given a 50% weightage in the final price calculation. Apart from this one trade at INR 53,500/t, and one deal at INR 54,000/t were also recorded at 1:06 pm, and 1:10 pm but was excluded due to timing.
- Other Price Indicators – bids/offers/indicative (T2) – Eight offers reported in the trading window and considered as T2 inputs. The average price of these eight was INR 55,080/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 55,190/t, rounded to INR 55,200/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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