SteelMint billet index rises on active demand, higher raw materials prices - 10 Jan

SteelMint's daily steel billet index is assessed at INR 44,250/tonne (t) (+350) exw Raipur on 10 Jan'22.

About 6,400 t of transactions in billets were recorded by SteelMint today against 2,440 t on 8 Jan.

The index continued to rise on active demand following optimistic trends, with surging prices of coal, iron ore pellets and sponge iron in the spot market.

Participants are expecting prices to remain strong as slight supply crunch prevails in the sponge iron market in Raipur, which may encourage producers to keep prices high. This may result in higher billet prices.

Rationale -

The 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 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 these four trades were recorded at INR 44,200/t, two deals at INR 44,300/t, and single deals at INR 44,350/t, INR 44,100/t, INR 44,000/t and INR 43,900/t. The average price of these ten transactions was INR 44,185/t and given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Seven offers were reported in the trading window and considered as T2 inputs. The average price of these seven was INR 44,271/t and given a 50% weightage in the final price calculation.
  
  

The final price of billet exw Raipur was at INR 44,228/t, rounded to INR 44,250/t exw.

Click for detailed methodology

T1 - Trade, T2 - Offer/Bid/Indicative, *Normalized price as per methodology