SteelMint: Raipur billet index falls further on low finished steel sales - 30 Jun

SteelMint's daily steel billet index was assessed at INR 49,000/tonne (t) (- INR 250) exw-Raipur on 30 June, 2022.

About 2,350 t of transactions in billets were recorded today as against 1,000 t on 29 June.

The index dropped further as bids remained low on account of limited buying enquiries for finished steel products. Hence, a few hot charging plants started offering billets in the spot market, leading to a slight improvement in supply and drop in prices.

The outlook on billet price movements hinges on finished steel sales as well raw material - sponge iron and iron ore - prices. India's largest miner NMDC is yet to release prices of iron ore for July dispatches, SteelMint notes.

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 48,800-49,000/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 49,000/t which is given a 50% weightage in the final price calculation.
  
  
• 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 49,000/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 49,000/t exw.

Click for detailed methodology

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