SteelMint’s daily steel billet index is assessed at INR 59,250/tonnes (t) (+INR 100) exw Raipur on 22 Mar’22.
About 1,550 t of transactions in billets were recorded by SteelMint today as against 3,100 t on 21 Mar’22.
The index remained strong on expected tight supplies in the spot market following the news of 60-80% power cuts in Raigarh. Thus, the suppliers kept offers at high levels even though limited enquiries were recorded throughout the day.
The offers edged higher by around INR 1,000/t in the opening trades, although prices later declined in the northern region and limited bids at high prices forced suppliers to cut offers.
Meanwhile, despite reduction in offers, buyers held back their bids and opted to wait and watch. As a result, trades edged down by around 50% 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) – One trade was recorded in the 2:30 pm to 5:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The one trade was recorded at INR 59,500/t. The average price of this one transactions was INR 59,500/t and given a 50% weightage in the final price calculation. Apart from this one trade at INR 60,500/t, and two trades at INR 60,000/t were also recorded at 12:30 pm, 13:00 pm and 13:30 pm but was excluded due to timing.
- Other Price Indicators – bids/offers/indicative (T2) – Thirteen offers reported in the trading window and considered as T2 inputs. The average price of these thirteen was INR 59,000/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 59,250/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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