SteelMint: Raipur billet index climbs on expected tight supplies - 13 Apr

SteelMint's daily steel billet index is assessed at INR 55,200/tonne (t) (+INR 1,800) exw Raipur on 13 Apr'22.

About 3,660 t of transactions in billets were recorded by SteelMint today as against 6,620 t on 12 April.

The index rose sharply on account of expected tight supplies and surge in steel prices in the northern region, especially Punjab.

As per industry sources in Raipur, power cuts started from yesterday and are expected to continue for the coming few days.

In addition, Raigarh-based producers informed that production remained disturbed on account of power shortage. Hence expectations of mismatch in supply-demand, amidst slightly improved demand, resulted in billet offers climbing today. However, stability in offers remained a big question as finished steel demand generally slows on higher offers.

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) - Three 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 one trade was recorded at INR 55,500/t, and one deal each at INR 55,400/t, and INR 55,200/t. The average price of these three transactions was INR 55,267/t and given a 50% weightage in the final price calculation. Apart from this one trade at INR 55,500/t was also recorded at 1:30 pm but was excluded due to timing.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Seven offers reported in the trading window and considered as T2 inputs. The average price of these seven was INR 55,175/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 55,221/t, rounded to INR 55,200/t exw.

Click for detailed methodology

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