SteelMint’s daily steel billet index is assessed at INR 43,200/tonne (t) (+ INR 300/t) exw Raipur on 6 Jan’22.
About 7,010 t of transactions in billets were recorded by SteelMint today against 3,000 t on 5 Jan.
The index rebounded following renewed demand on account of rising prices in the northern region during the first half today.
However, decline in offers later in the day impacted demand marginally and trade discounts in finished steel products increased in Raipur.
Sources are expecting billet prices to remain volatile in view of sufficient orders with suppliers, subdued finished steel demand and rising COVID cases which is likely to impact finished steel demand in the coming days, 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) – Eight 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 43,300/t, two deals at INR 43,100/t, and one deal each at INR 43,400/t, INR 43,200/t, and INR 43,000/t. The average price of these eight transactions was INR 43,199/t and given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Six offers reported in the trading window and considered as T2 inputs. The average price of these six was INR 43,220/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 43,210/t, rounded to INR 43,200/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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