SteelMint: Raipur billet index falls as bids edge lower - 29 Mar

SteelMint's daily steel billet index is assessed at INR 56,300/tonne (t) (-INR 500) exw Raipur on 29 Mar'22.

About 3,900 t of transactions in billets were recorded by SteelMint today as against 1,400 t on 28 March.

The index trended downwards as bids continued to lower as against floated offers by the suppliers on account of poor offtake in finished steel followed by uncertain price movements ahead of the fiscal year-end.

Market participants are expecting Raipur billet prices to remain volatile on account of measured finished steel demand and fluctuating ingots prices in the northern region along with power cuts in the central region, especially in Raigarh.

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) - Four 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 56,200/t, and one deal each at INR 56,000/t, and INR 55,700/t. The average price of these four transactions was INR 56,200/t and 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 56,440/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 56,320/t, rounded to INR 56,300/t exw.

Click for detailed methodology

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