SteelMint’s daily steel billet index is assessed at INR 49,000/tonne (t) (+ INR 400) exw-Raipur on 27 July, 2022.
About 7,450 t of transactions were recorded today as against 5,600 t on 26 July.
The index rallied with improved demand for finished steel products and the key factor of constant surge in steel prices in the northern region due to ongoing shortage of raw material, sources informed SteelMint.
SteelMint’s daily price assessment for wire rods and sponge iron rose by INR 600/t, while rebar prices increased by INR 200/t in Raipur.
About 7,000 t of wire rods and 4,500 t of rebar trades were recorded by SteelMint today.
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 at INR 48,500-49,200/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 48,973/t which is given a 50% weightage in the final price calculation. Apart from this two trade recorded at 1:06 pm, INR 48,500 and 1:21 pm, INR 48,600 was excluded due to timing.
- Other Price Indicators – bids/offers/indicative (T2) – Ten offers reported in the trading window and considered as T2 inputs. The average price of these ten was INR 48,986/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 48,980/t, rounded to INR 49,000/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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