SteelMint billet index drops by INR 150/t, market expects limited downside - 31th Jul

SteelMint billet index (Exw Raipur) has been assessed at INR 28,450/t (-150), Exw Raipur on 31st July, 18:00 IST.

• 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 - Nine trades were recorded in the 2.30 to 5.30 pm SteelMint trading window and considered for final price calculation as T1 inputs. Out of these, three trade was concluded at INR 28,400/t, while two trades were at INR 28,500/t, one trade at INR 28,300/t, one trade at INR 28,350/t, one trade at INR 28,400/t & one trade at INR 28,700/t. The average price of these nine transactions was INR 28,444/t and given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators (Firm bids/offers) T2 - There were ten offers reported in the trading window and considered as T2 inputs. The average price of these was INR 28,444/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet ex-Raipur was INR 28,444/t, rounded to INR 28,450/t Exw.

For detailed methodology - click here

Observations on improved inquiries

• Re-rollers secured raw materials due to upcoming holidays for 2-3 days.
  
  
• Industry experts believe prices should not fall further due to low margins, which in turn fresh bookings.
  
  
• Assumptions of further hike in prices through the large scale mills for August deliveries.
  
  

T1: Trade
T2: Offer/Bid/Indicative
Offer and Trade reported during 11:00 to 14:30 IST are not considered in the index calculation