SteelMint’s daily steel billet index is assessed at INR 47,550/tonne (t) (+ INR 650) exw-Raipur on 25 July, 2022.
About 4,000 t of transactions were recorded today as against 1,150 t on 23 July.
The index rebounded on demand recovery with some improvement in finished steel sales, especially for wire rod and rebar. In addition, higher prices in the northern region influenced producers to keep billet prices higher. As a result, the index edged up today.
SteelMint’s daily price assessment for wire rods rose by INR 700/t and for sponge iron by INR 100-200/t, while rebar prices fell by INR 200/t in Raipur.
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) – Six trades at INR 47,300-47,600/t were recorded during the 2:30 am to 5:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 47,544/t which is given a 50% weightage in the final price calculation. Apart from this two trades recorded at 12:15 and 12:30 of INR 47,000 & 47,300 were 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 47,507/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 47,526/t, rounded to INR 47,550/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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