SteelMint’s daily steel billet index is assessed at INR 48,600/tonne (t) (+INR 200) exw Raipur on 1 Feb’22.
About 2,950 t of transactions in billets were recorded by SteelMint today against 3,450 t on 31 Jan.
However, spot trades remained limited as buyers seemed cautious due to a significant rise in offers.
Increasing raw material prices resulted in a hike in sponge iron prices but subdued demand worried buyers. Thus, the majority of participants opted a wait-and-watch mode amidst unclear market trends as prices have hit close to all-time high, SteelMint notes.
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 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 three trades were recorded at INR 48,700/t, and one deal each at INR 48,750/t, INR 48,550/t, and INR 48,500/t. The average price of these six transactions was INR 48,666/t and given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Eleven offers reported in the trading window and considered as T2 inputs. The average price of these eleven was INR 48,550/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 48,608/t, rounded to INR 48,600/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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