SteelMint’s daily steel billet index was assessed at INR 45,600/tonne (t) (-INR 800) exw Raipur on 25 May 2022, slipping to a four-month low amid limited trading.
About 1,250 tonnes (t) of billet transactions were recorded today as against 1,420 t on 24 May.
The index hit a four-month low as similar price ranges were recorded last in mid-January, 2022.
Billet prices continued to decline as majority of resellers went to the sidelines due to a sharp fall in prices, leading to a heavy funds crisis in the market which affected spot trading.
Participants believe the market will take time to find stability and return to a normal trading pattern as participants are primarily aiming to lift material which they had booked previously at higher prices compared to the prevailing offers. This trend has narrowed down spot trading at current offers.
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) – Three trades in the range of INR 45,500-45,600/t were recorded during the 2:30 pm to 5:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 45,584/t which is 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 45,633/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 45,609/t, rounded to INR 45,600/t exw.
Click for detailed methodology
T1 – Trade, T2 – offer/bid/indicative, *Normalized price as per methodology
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