SteelMint: Raipur billet index falls further on limited spot trades - 18 May

SteelMint's daily steel billet index was assessed at INR 50,700/tonne (t) (-INR 300) exw Raipur on 18 May'22.

About 2,450 t of transactions in billets were recorded by SteelMint today as against 7,875 t on 17 May.

The index trended down as bids continued to edge lower on account of sluggish demand for finished steel products amidst a bearish outlook on rising inventories at mid-sized plants. Hence, the majority of buyers are holding fresh bookings, leading to a fall in spot trades.

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 in the range of INR 50,600-50,750/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 50,706/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Seventeen offers reported in the trading window and considered as T2 inputs. The average price of these seventeen was INR 50,650/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 50,678/t, rounded to INR 50,700/t exw.

Click for detailed methodology

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