SteelMint’s daily steel billet index is assessed at INR 45,200/tonne (t) (+50) exw Raipur on 15 Jan’22.
About 1,000 t of transactions in billets were recorded by SteelMint today against 1,300 t on 14 Jan.
The index rebounded due to optimism in the market following positive response in OMC iron ore auction. In addition, with the rise in prices in Punjab, north India today, producers kept prices strong and despite limited spot trades, the index rose.
Going forward, billet prices will depend on sponge iron prices which are likely to remain strong on rising raw material prices.
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) – Two trades were recorded in the 11:30 am to 3:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. Out of which one trade was recorded at INR 45,300/t, and one deal at INR 45,200/t. The average price of these two transactions was INR 45,240/t and given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Sixteen offers reported in the trading window and considered as T2 inputs. The average price of these sixteen was INR 45,146/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 45,193/t, rounded to INR 45,200/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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