SteelMint’s daily steel billet index is assessed at INR 52,500/tonne (t) (+INR 900) exw Raipur on 1 Mar’22.
About 4,000 t of transactions in billets were recorded by SteelMint today as against 800 t on 28 February.
The index continued heading north as producers floated offers higher on the assumption of sponge iron prices rising further with the strengthening in coal prices globally. In view of these factors buyers are actively participating even though the offers are at an all-time high.
Supplies in the market remain average and very few suppliers, including resellers, are available for early dispatches, while most of the sellers are packed with orders.
Looking at these factors, market participants believe that billet prices are likely to remain strong in the domestic market as prices of other metallics i.e. scrap and pig iron are rising on a day-to-day basis, not to forget that silicon manganese prices too are spiralling.
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) – Five 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 two trades were recorded at INR 52,600/t, two deals at INR 52,500/t, and one deal at INR 52,400/t. The average price of these five transactions was INR 52,515/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 52,513/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 52,514/t, rounded to INR 52,500/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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