SteelMint’s daily steel billet index is assessed at INR 48,650/tonne (t) (-INR 50) exw-Raipur on 5 Feb’22.
About 3,600 t of transactions in billets were recorded by SteelMint today against 2,700 t on 4 Jan.
The index fell slightly on account of limited demand and poor enquiries for finished steel products. 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) – 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 three trades were recorded at INR 48,600/t, two deals at INR 48,700/t, and one deal at INR 48,800/t. The average price of these six transactions was INR 48,619/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 48,729/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 48,674/t, rounded to INR 48,650/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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