SteelMint’s daily steel billet index was assessed at INR 44,800/tonne (t) (+ INR 400) exw-Raipur on 10 June 2022.
About 6,000 tonnes (t) of transactions in billets were recorded by SteelMint today as against 4,150 t on 9 June.
The index rose following improvement in spot trades and bids as well with a slight shortage of material for ready delivery. Hence, a few plants charged a premium for fast delivery which led to a surge in offers today.
In addition, stronger demand was seen for finished steel products compared to yesterday. This was a key factor that supported demand for billets, sources informed.
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 in the range of INR 44,500-45,000/t were recorded during the 2:30 pm to 05:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 44,782/t which is given a 50% weightage in the final price calculation. Apart from this one trade at INR 45,000/t was also recorded at 1:50 pm, but was excluded due to timing.
- Other Price Indicators – bids/offers/indicative (T2) – Thirteen offers reported in the trading window and considered as T2 inputs. The average price of these thirteen was INR 44,864/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 44,823/t, rounded to INR 44,800/t exw.
Click for detailed methodology
T1 – Trade, T2 – offer/bid/indicative, *Normalized price as per methodology
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