SteelMint’s daily steel billet index is assessed at INR 50,300/tonne (t) (+INR 800) exw-Raipur on 25 Feb’22.
About 1,300 t of transactions in billets were recorded by SteelMint today as against 9,000 t on 24 February.
Although, the index moved up, billets demand was quite weak as many buyers held back bookings owing to higher prices.
Moreover, resellers were aggressive today but couldn’t settle deals due to disparity between bids and offers.
Amidst the unclear price outlook of whether the current prices will sustain or not, poor buying enquiries were seen in sponge iron and finished steel products, 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) – Two 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 one trade was recorded at INR 50,500/t, and one deal at INR 50,300/t. The average price of these two transactions was INR 50,300/t and given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Eleven offers reported in the trading window and considered as T2 inputs. The average price of these eleven was INR 50,333/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 50,317/t, rounded to INR 50,300/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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