SteelMint: Raipur billet index edges up INR 200/t on improve bids - 19 May

SteelMint's daily steel billet index was assessed at INR 50,900/tonne (t) (+INR 200) exw Raipur on 19 May 2022.

About 4,850 t of transactions in billets were recorded by SteelMint today as against 2,450 t on 18 May.

The index rebounded with slight improvement in bids following the price rally in the northern region - Punjab. However, finished steel demand remained slow and there was lack of confidence among participants regarding a further increase in spot billet offers.

Falling raw material prices and sluggish finished steel demand are indicating that offers may soften in the coming days, 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 in the range of INR 50,800-51,000/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 50,924/t which is 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 50,900/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 50,912/t, rounded to INR 50,900/t exw.

Click for detailed methodology

T1 - Trade, T2 - offer/bid/indicative, *Normalized price as per methodology