SteelMint: Raipur billet index falls even as trades improve on lower offers - 17 May

SteelMint's daily steel billet index was assessed at INR 51,000/tonne (t) (-INR 350) exw Raipur on 17 May'22.

About 7,875 t of transactions in billets were recorded by SteelMint today as against 1,400 t on 16 May.

The index fell further, although spot trades improved on lower offers following a rebound in steel prices in north India during afternoon trading.

With improved demand, selling pressure lessened for a couple of major billet producers in the central region. Hence, there are slim chances of a rigorous drop in offers in the coming time, sources informed SteelMint.

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 50,700-51,700/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 50,988/t which is given a 50% weightage in the final price calculation. Apart from this two trades at INR 50,700/t were also recorded at 2:06 pm and 5:52 pm, but was excluded due to timing.
  
  
• 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 51,050/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 51,019/t, rounded to INR 51,000/t exw.

Click for detailed methodology

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