SteelMint’s daily steel billet index is assessed at INR 55,700/tonne (t) (-INR 900) exw Raipur on 5 Apr’22.
About 2,920 t of transactions in billets were recorded by SteelMint today as against 3,060 t on 4 April.
The index fell further on lower bids as finished steel demand remained poor amidst a slight rise in inventories. Market participants are expecting prices to soften further as raw material prices are heading south.
The market is currently sluggish and demand is weak, sources said.
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 2:30 pm to 5:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. Out of which two trades were recorded at INR 56,200/t, and one deal each at INR 56,000/t, and INR 55,000/t. The average price of these four transactions was INR 55,750/t and given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Seventeen offers reported in the trading window and considered as T2 inputs. The average price of these seventeen was INR 55,669/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 55,710/t, rounded to INR 55,700/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
Leave a Reply