SteelMint’s daily steel billet index is assessed at INR 43,600/tonne (t) (+INR 450) exw-Raipur on 31 Dec’21.
About 5,900 t of transactions in billets were recorded by SteelMint today against 8,295 t on 30 Dec.
The index rose on account of active demand amid optimistic trends in the market, as participants are hoping that the primary mills would keep their finished long steel prices higher and, ultimately, demand with the mid-sized mills would remain supported.
In addition, there are sufficient orders with semis producers. This is one reason why prices are keeping strong.
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) – Nine 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 four trades were recorded at INR 43,500/t, two deals at INR 43,800/t, and one deal each at INR 44,100/t, INR 43,700/t, and INR 43,600/t. The average price of these nine transactions was INR 43,614/t and given a 50% weightage in the final price calculation.
- 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 43,625/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 43,619/t, rounded to INR 43,600/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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