SteelMint’s daily steel billet index is assessed at INR 43,700/tonne (t) (-INR 50) exw-Raipur on 4 Jan’22.
About 3,150 t of transactions in billets were recorded by SteelMint today against 6,200 t on 3 Jan.
The index fell slightly on account of limited demand and poor enquiries for finished steel products. Thus, bids continued to remain low, resulting in a decline in 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) – Seven 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 43,700/t, and one deal each at INR 43,800/t, INR 43,750/t, and INR 43,600/t. The average price of these seven transactions was INR 43,709/t and given a 50% weightage in the final price calculation. Apart from these, two trades were also recorded at INR 43,700/t at 2:00 pm but were excluded due to timing.
- Other Price Indicators – bids/offers/indicative (T2) –Five offers were reported in the trading window and considered as T2 inputs. The average price of these five was INR 43,680/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was INR 43,694/t, rounded to INR 43,700/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalised price as per methodology
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