SteelMint’s daily steel billet index is assessed at INR 43,900/tonne (t) (+ INR 700/t) exw Raipur on 7 Jan’22.
About 5,040 t of transactions in billets were recorded by SteelMint today against 7,010 t on 6 Jan.
While the index rose, trade volumes dropped on account of slow demand for finished steel products.
Billet prices remained strong across regions on account of rising coal prices, which kept sponge prices supported. Thus, billet producers were influenced to keep prices strong even though demand was low.
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) – Ten 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 four trades were recorded at INR 43,900/t, three deals at INR 43,800/t, two deals at INR 44,000/t, and one deal at INR 43,950/t. The average price of these ten transactions was INR 43,922/t and given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Twelve offers reported in the trading window and considered as T2 inputs. The average price of these twelve was INR 43,900/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 43,911/t, rounded to INR 43,900/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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