SteelMint: Raipur billet index edges up on tight supplies, active demand - 7 Mar

SteelMint's daily steel billet index is assessed at INR 59,500/tonne (t) (+INR 2,050) exw Raipur on 7 Mar'22.

About 4,650 t of transactions in billets were recorded by SteelMint today as against 1,850 t on 5 March.

The index moved higher as market trends remained optimistic. In addition, a slight supply shortage of billets in the spot market led producers to keep prices higher in the presence of active demand.

Looking at higher sponge iron and metallics prices and healthy orders with suppliers, market sources believe billet prices ought to remain strong.

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) - 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 two trades were recorded at INR 59,500/t, and one deal each at INR 59,900/t, INR 59,700/t, and INR 59,600/t. The average price of these five transactions was INR 59,518/t and given a 50% weightage in the final price calculation. Apart from this one trade at INR 59,200/t was also recorded at 13:30 pm but was excluded due to timing.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Eleven offers reported in the trading window and considered as T2 inputs. The average price of these eleven was INR 59,500/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 59,509/t, rounded to INR 59,500/t exw.

Click for detailed methodology

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