SteelMint: Raipur billet index edges lower on low finished steel demand - 21 June

SteelMint's daily steel billet index was assessed at INR 46,600/tonne (t) (- INR 100) exw-Raipur on 21 June 2022.

About 4,000 tonnes (t) of transactions in billets were recorded today as against 4,450 t on 20 June.

The index edged down on account of slow buying interest following decline in offers in the northern region. However, later, price recovery in Punjab market turned sentiments positive encouraging sellers to revise their offers.

Sources said that the billet price movement will depend on finished steel demand which was low today after offers were revised.

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) - Nine trades in the range of INR 46,500-46,750/t were recorded during the 2:30 pm to 5:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 46,572/t which is given a 50% weightage in the final price calculation. Apart from this one trade at INR 46,200/t was also recorded at 1:26 pm, but was excluded due to timing.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Fifteen offers reported in the trading window and considered as T2 inputs. The average price of these fifteen was INR 46,589/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 46,581/t, rounded to INR 46,600/t exw.

Click for detailed methodology

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