SteelMint’s daily steel billet index is assessed at INR 55,000/tonne (t) (=) exw-Raipur on 26 April 2022.
About 5,950 t of transactions in billets were recorded by SteelMint today against 2,800 t on 25 April.
Rising prices in the northern region during the first half today kept bids strong, while decline in offers later on resulted in a drop in billet offers, resulting in stability in the index.
Amidst sluggish finished steel demand, there is lack of confidence among buyers.
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 in the range of INR 55,000-55,400/t were recorded from 2:30 pm to 5:30 pm SteelMint trading window and were considered as T1 inputs for final price calculation. The average of these transactions was INR 55,114/t which is given a 50% weightage in the final price calculation. Apart from this, one trade at INR 55,100/t, and one deal at INR 55,250/t were also recorded at 12:41 pm, and 1:37 pm, but was excluded due to timing.
- Other Price Indicators – bids/offers/indicative (T2) – Twelve offers were reported in the trading window which were considered as T2 inputs. The average price of these twelve offers was INR 54,929/t and was given a 50% weightage in the final price calculation.
The final price for billet exw-Raipur was at INR 55,021/t, rounded to INR 55,000/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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