SteelMint’s daily steel billet index is assessed at INR 53,400/tonne (t) (+INR 900) exw Raipur on 2 Mar’22.
About 6,450 t of transactions in billets were recorded by SteelMint today as against 4,000 t on 1 March.
The index rallied as demand continued to remain active on optimistic trends amidst expectations of a further surge in prices. Thus, with rising prices, spot trades also remained supported.
With rising coal prices globally, there is hope among participants about prices strengthening in the coming days.
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) – Six 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 two trades were recorded at INR 53,500/t, one at INR 53,250/t, and one deal each at INR 53,350/t, INR 53,200/t & INR 52,800/t. The average price of these six transactions was INR 53,378/t and given a 50% weightage in the final price calculation.Apart from this one trade at INR 52,500/t was also recorded at 11:48 am but was excluded due to timing.
Other Price Indicators – bids/offers/indicative (T2) – Fourteen offers reported in the trading window and considered as T2 inputs. The average price of these fourteen was INR 53,373/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 53,376/t, rounded to INR 53,400/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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