SteelMint: Raipur billet index climbs to three-month high as prices rally - 20 Jan

SteelMint's daily steel billet index is assessed at INR 46,200/tonne (t) (+400) exw Raipur on 20 Jan'22.

About 3,320 t of transactions in billets were recorded by SteelMint today against 5,150 t on 19 Jan.

The index rose further to a three-month high. Similar prices were last recorded during mid-Oct'21.

Rising raw material prices are strengthening domestic sponge iron and billet offers and given active demand, producers are keeping prices higher.

Industry insiders remain optimistic about semis price movements in view of sufficient orders with suppliers along with higher input costs, SteelMint notes.

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) - Six 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 46,200/t, two deals at INR 46,300/t, and one deal at INR 46,150/t. The average price of these six transactions was INR 46,206/t and given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) -Eight offers were reported in the trading window and considered as T2 inputs. The average price of these eight was INR 46,233/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 46,220/t, rounded to INR 46,200/t exw.

Click for detailed methodology

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