SteelMint: Raipur billet index climbs INR 700/t on improved trades - 17 Jan

SteelMint's daily steel billet index is assessed at INR 45,900/tonne (t) (+700) exw Raipur on 17 Jan'22.

About 5,600 t of transactions in billets were recorded by SteelMint today against 1,000 t on 15 Jan.

The index moved upwards following improved trades today. However, market participants feel that the prevailing offers are quite high, which don't appear to be sustainable as finished steel demand remains lacklustre.

Finished steel product lifting remains slow in the retail segment on prevailing high offers. Hence re-rollers are booking raw materials as per requirement.

Trade discounts in the Raipur wire rod market increased slightly today and despite the healthy discounts for finished products, suppliers were unable to attract much buying interest.

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) - Eight 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 45,900/t, two deals at INR 45,950/t, and one deal each at INR 45,850/t, and INR 45,800/t. The average price of these eight transactions was INR 45,900/t and given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Fourteen offers were reported in the trading window and considered as T2 inputs. The average price of these 14 was INR 45,950/t and given a 50% weightage in the final price calculation.
  
  

The final price of billet exw Raipur was at INR 45,925/t, rounded to INR 45,900/t exw.

Click for detailed methodology

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