SteelMint’s daily steel billet index was assessed at INR 45,800/tonne (t) (+ INR 650) exw-Raipur on 15 June 2022.
About 6,750 tonnes (t) of transactions in billets were recorded by SteelMint today as against 3,650 t on 14 June.
The index rebounded following a revival in demand over the last few days and tight supply amid the sudden demand recovery. Demand rebounded for finished steel products, especially wire rods in Raipur, which triggered the rise in billet prices. Thus, the active buying through re-rollers on one hand and slow billet supply by a few plants in the spot market on the other hand, resulting in the price recovery.
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) – Ten trades in the range of INR 45,400-45,800/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 45,762/t which is given a 50% weightage in the final price calculation. Apart from this one trade at INR 45,300/t was also recorded at 1:17 pm, but was excluded due to timing.
- Other Price Indicators – bids/offers/indicative (T2) – Ten offers reported in the trading window and considered as T2 inputs. The average price of these ten was INR 45,806/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 45,784/t, rounded to INR 45,800/t exw.
Click for detailed methodology
T1 – Trade, T2 – offer/bid/indicative, *Normalized price as per methodology
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