SteelMint: Limited buying interest weighs on Raipur billet index - 21 Jan

SteelMint's daily steel billet index is assessed at INR 45,700/tonne (t) (-500) exw Raipur on 21 Jan'22.

About 1,300 t of transactions in billets were recorded by SteelMint today against 3,320 t on 20 Jan.

The index fell today after a continuous rise since the last few days. Limited enquiries and sufficient bookings have resulted in limited trade activities; hence prices edged down.

In addition, a drop in offers in Punjab, north India, was a major factor behind the price correction across regions.

However, industry participants are expecting optimistic price trends in view of higher raw material prices globally.

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) - Five 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 which three trades were recorded at INR 45,800/t, and one deal each at INR 46,000/t, and INR 45,650/t. The average price of these five transactions was INR 45,742/t and given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Eight offers reported in the trading window and considered as T2 inputs. The average price of these eight was INR 45,700/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 45,721/t, rounded to INR 45,700/t exw.

Click for detailed methodology

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