SteelMint: Raipur billet index drops by INR 450/t despite improved trade - 21 Dec

SteelMint's daily steel billet index is assessed at INR 41,050/tonne (t) (-INR 450) exw-Raipur on 21 Dec'21.

About 3,120 t of transactions in billets were recorded by SteelMint today against 1,210 t on 20 Dec.

Although the index fell, trades improved as a few buyers resumed purchases to maintain stocks of raw materials, resulting in over two-fold rise in spot trades compared to yesterday.

However, there is lack of confidence among market participants about a rebound in prices looking at the poor offtake of finished steel products. In addition, declining prices of finished steel through the primary mills has kept stockists cautious about taking positions.

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%.

Rationale -

• 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 one trade was recorded at INR 41,350/t, and one deal each at INR 41,200/t, INR 41,150/t, INR 41,100/t, and INR 41,000/t. The average price of these five transactions was INR 41,121/t and given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Fourteen offers reported in the trading window and considered as T2 inputs. The average price of these fourteen was INR 41,000/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 41,060/t, rounded to INR 41,050/t exw.

Click for detailed methodology

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