SteelMint’s daily steel billet index is assessed at INR 40,950/tonne (t) (-INR 1,100/t) exw-Raipur on 22 Nov’21.
About 1,900 t of transactions in billets were recorded by SteelMint today against 4,170 t recorded on 20 Nov.
The index fell steeply in the wake of persistent weakness in demand in the spot market following poor offtake of finished steel products on offers floated by traders.
As a result, wire rod base offers in Raipur fell by INR 700/t, d-o-d. In a bid to boost sales, discount margins widened. Trade discounts through the suppliers remained high and were assessed at around INR 2,000-2,200/t as against INR 1,500-1,800/t yesterday.
- 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) – Five 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 41,100/t, two deals at INR 40,700/t, and one deal at INR 41,000/t. The average price of these five transactions was INR 40,879/t and given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Eleven offers reported in the trading window and considered as T2 inputs. The average price of these eleven was INR 41,070/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 40,974/t, rounded to INR 40,950/t exw.
Click for detailed methodology
T1: Trade
T2: Offer/Bid/Indicative
Leave a Reply