SteelMint: Raipur billet index climbs to four-month high on bullish trends - 24 Feb

SteelMint's daily steel billet index is assessed at INR 49,500/tonne (t) (+INR 900) exw-Raipur on 24 Feb'22. A similar high price range had been last recorded in mid-Oct'21.

About 9,000 t of transactions in billets were calculated by SteelMint today as against 5,750 t on 23 Feb.

The index climbed following an improvement in bids on prevailing optimistic trends due to an expected disturbance in the trade cycle globally. Ultimately prices of metallics are expected to remain high, sources informed SteelMint.

In view of all these factors buyers aggressively booked material on apprehension of further surge in prices.

Also, active demand was observed for finished steel products on increased offers through the manufacturers, which triggered demand for billets in the spot market as well as trade volumes.

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) - 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 which three trades were recorded at INR 49,300/t, two deals each at INR 49,500/t, and INR 49,400/t, and one deal each at INR 49,600/t, INR 49,350/t, and INR 49,200/t. The average price of these ten transactions was INR 49,480/t and given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) -Nine offers reported in the trading window and considered as T2 inputs. The average price of these nine was INR 49,483/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 49,482/t, rounded to INR 49,500/t exw.

Click for detailed methodology

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