SteelMint: Raipur billet index falls INR 200/t as bids edge lower - 31 Mar

SteelMint's daily steel billet index is assessed at INR 55,800/tonne (t) (-INR 200) exw Raipur on 31 Mar'22.

About 4,110 t of transactions in billets were recorded by SteelMint today as against 2,900 t on 30 March.

The index fell further as bids continued to remain low. However, trade volumes improved d-o-d with buyers taking positions on the assumption that prices would bottom out looking at fluctuating coal prices.

In addition, rising power cuts in Raigarh, central India, is influencing suppliers not to lower prices as orders are sufficient with them due to lower supply from outside Raipur.

All these factors indicate that billet prices may rebound once demand for finished steel products improves.

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 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 55,800/t, and one deal each at INR 55,750/t, INR 55,700/t, and INR 55,200/t. The average price of these five transactions was INR 55,773/t and given a 50% weightage in the final price calculation. Apart from this one trade at INR 55,800/t, was also recorded at 12:30 pm but was excluded due to timing.
  
  
• 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 55,818/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 55,795/t, rounded to INR 55,800/t exw.

Click for detailed methodology

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