SteelMint: Raipur billet index falls INR 400/t on cautious buying - 26 May

SteelMint's daily steel billet index was assessed at INR 45,200/tonne (t) (-INR 400) exw-Raipur on 26 May 2022.

About 2,400 tonnes (t) of billet transactions were recorded today as against 1,250 t on 25 May.

The index slipped further as major buyers were cautious with a constant fall in offers amidst poor off-take of finished steel products.

Participants expect prices to soften further as semis and finished steel stock slightly rises.

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) - Four trades in the range of INR 45,200-45,500/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 45,200/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Seven offers reported in the trading window and considered as T2 inputs. The average price of these seven was INR 45,250/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 45,225/t, rounded to INR 45,200/t exw.

Click for detailed methodology

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