SteelMint: Raipur billet index falls INR 400/t on thin trading - 18 Jan

SteelMint's daily steel billet index is assessed at INR 45,500/tonne (t) (-400) exw Raipur on 18 Jan'22.

About 1,100 t of transactions in billets were recorded by SteelMint today against 5,600 t on 17 Jan.

The index moved down due to limited enquiries following price correction in Punjab, north India. Hence, trades across regions slowed down, with thin spot trading observed in Raipur.

Much the same scenario prevailed in the finished steel market with producers reporting limited deals today, which forced them to hold their buying enquiries for raw materials i.e. sponge iron and billets.

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) - Two trades were recorded in the 2:30 pm to 5:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. Both the trades were recorded at INR 45,500/t. The average price of these two transactions was INR 45,500/t and given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) -Sixteen offers were reported in the trading window and considered as T2 inputs. The average price of these 16 was INR 45,550/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 45,525/t, rounded off to INR 45,500/t exw.

Click for detailed methodology

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