SteelMint’s daily steel billet index is assessed at INR 43,150/tonne (t) (+INR 400) exw-Raipur on 30 Dec’21.
About 8,295 t of transactions in billets were recorded by SteelMint today against 4,440 t on 29 Dec.
The index recovered following improved bids. Bids rose two-fold amidst subdued demand for finished steel products. This lead to a surge in offers.
However, market sources are not confident about a rally in prices and expect volatility in offers in the coming days amid the holiday mood and strong raw material prices, 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) – Eleven 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 43,000/t, two deals at INR 43,200/t, and one deal each at INR 43,300/t, INR 43,250/t, INR 43,150/t, INR 43,100/t, INR 42,900/t, and INR 42,800/t. The average price of these eleven transactions was INR 43,157/t and given a 50% weightage in the final price calculation.
- 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 43,117/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 43,137/t, rounded to INR 43,150/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
.jpg)
Leave a Reply