SteelMint’s daily steel billet index is assessed at INR 48,600/tonne (t) (+ INR 1,050) exw-Raipur on 26 July, 2022.
About 5,600 t of transactions were recorded today as against 4,000 t on 25 July.
The index increased on active demand for finished steel products since yesterday as sufficient trades were recorded by the mills.
Following the improvement in finished steel sales, spot billet demand also remained strong today, which led to a surge in offers.
SteelMint’s daily price assessment for wire rods and sponge iron rose by INR 1,000/t, while rebar prices increased by INR 700/t in Raipur.
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) – Eleven trades at INR 48,500-48,900/t were recorded during the 2:30 am to 5:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 48,599/t which is given a 50% weightage in the final price calculation. Apart from these one trade recorded at 2:14 pm at INR 48,500 was excluded due to timing.
- Other Price Indicators – bids/offers/indicative (T2) – Nine offers reported in the trading window and considered as T2 inputs. The average price of these nine was INR 48,564/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 48,582/t, rounded to INR 48,600/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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