SteelMint: Raipur billet index drops slightly by INR 100/t - 2 Apr

SteelMint's daily steel billet index is assessed at INR 56,800/tonne (t) (-INR 100) exw Raipur on 2 Apr'22.

About 1,900 t of transactions in billets were recorded by SteelMint today as against 2,900 t on 1 April.

The index fell slightly on account of limited enquiries amidst aggressive selling by the traders. Thus, offers moved down in today's trade, while the producers kept prices strong.

Market participants are expecting billet prices to remain volatile on account of seasonal measured production and moderate demand. However, if demand for finished steel gains momentum, billet offers are expected to increase gradually, sources said.

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 11:30 am to 3:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. Out of which one trade was recorded at INR 57,000/t, and one deal each at INR 56,800/t, and INR 56,600/t. The average price of these three transactions was INR 56,832/t and given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) -Thirteen offers were reported in this trading window and considered as T2 inputs. The average price of these 13 was INR 56,808/t and given 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 56,820/t, rounded to INR 56,800/t exw.

Click for detailed methodology

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