SteelMint: Raipur billet index falls INR 200/t as demand for finished steel remains low - 2 Jul

SteelMint's daily steel billet index was assessed at INR 49,200/tonne (t) (- INR 200) exw-Raipur on 2 July, 2022.

About 850 t of transactions in billets were recorded today as against 2,900 t on 1 July.

The index dropped due to continued dull demand for finished steel products and, importantly, the slump in steel prices in the northern region of Punjab.

Meanwhile, participants are also waiting for NMDC's price revision and price announcements of finished steel products from the primary mills for July orders, for taking positions.

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) - Three trades at INR 49,200-49,600/t were recorded during the 11:30 am to 3:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these three transactions was INR 49,200/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Nineteen offers reported in the trading window and considered as T2 inputs. The average price of these nineteen was INR 49,229/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 49,215/t, rounded to INR 49,200/t exw.

Click for detailed methodology

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