SteelMint: Raipur billet index falls further on low bids, dull finished steel sales - 4 Aug

SteelMint's daily steel billet index is assessed at INR 49,550/tonne (t) (- INR 450/t) exw-Raipur on 4 August, 2022.

About 2,350 t of billet transactions were recorded today as against 2,400 t on 3 August.

The index trended lower on poor off-take of billets due to dull finished steel inquiries amid bearish outlook.

SteelMint's daily price assessment for rebars fell by INR 400/t and sponge iron by INR 200/t, while wire rods prices plummeted by INR 800/t in Raipur.

SteelMint recorded about 850 t wire rod transactions in Raipur against 700 t yesterday. Meanwhile, 1,100 t rebars deals were confirmed today against 1,800 yesterday.

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) - Eight trades at INR 49,500-49,900/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 49,559/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 49,550/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 49,555/t, rounded to INR 49,550/t exw.

Click for detailed methodology

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