SteelMint’s daily steel billet index was assessed at INR 49,200/tonne (t) (=) exw-Raipur on 4 July 2022.
About 5,450 t of transactions were recorded today as against 850 t on 2 July.
However, spot trade improved on the back of surging steel prices in Punjab market.
In addition, price recovery in sponge iron has also influenced resellers and finished steel makers to keep sufficient stock of billets. This has triggered billet demand in Raipur.
Finished steel (rebars and wire rods) demand in Raipur was moderate, sources informed SteelMint.
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) – Seven trades in the range of INR 49,100-49,300/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 49,222/t which is given a 50% weightage in the final price calculation. Apart from this one trade at INR 49,100/t was also recorded at 12:41 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 49,163/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 49,193/t, rounded to INR 49,200/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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