SteelMint’s daily steel billet index was assessed at INR 49,600/tonne (t) (+ INR 400) exw-Raipur on 28 June, 2022.
About 6,400 tonne (t) of transactions in billets were recorded today as against 3,800 t on 27 June.
The index rose on improved demand and continued supply shortage of ready-delivery material. Hence, a majority of plants floated higher offers and prices in the market saw a sustained uptrend.
In addition, the key factor behind strengthening prices was a constant surge in offers in Punjab, north India.
Sources told SteelMint that they were optimistic looking at sufficient orders with suppliers.
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 in the range of INR 49,200-49,800/t were recorded during the 2:30 pm to 5:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 49,526/t which is given a 50% weightage in the final price calculation.
- 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 49,650/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 49,588/t, rounded to INR 49,600/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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