SteelMint: Raipur billet index drops INR 350/t on lower bids - 29 Dec

SteelMint's daily steel billet index is assessed at INR 42,750/tonne (t) (-INR 350) exw-Raipur on 29 Dec'21.

About 4,440 t of transactions in billets were recorded by SteelMint today against 600 t on 28 Dec.

The index fell on account of lower bids following decline in finished steel prices. However, as against yesterday, spot trades improved in Raipur as demand was active in the first half with rise in prices in the northern region - Punjab. However, offers declined in the second half which resulted in limited enquiries across regions.

Prices of semi-finished products are likely to remain volatile due to subdued demand alongside strong raw material prices, 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) - Seven 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 42,800/t, two deals at INR 43,000/t, and one deal each at INR 42,600/t, and INR 42,500/t. The average price of these seven transactions was INR 42,721/t and given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Thirteen offers reported in the trading window and considered as T2 inputs. The average price of these thirteen was INR 42,825/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 42,773/t, rounded to INR 42,750/t exw.

Click for detailed methodology

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