SteelMint: Raipur billet index falls INR 500/t on lower bids - 28 Jan

SteelMint's daily steel billet index is assessed at INR 47,700/tonne (t) (-INR 500) exw Raipur on 28 Jan'22.

About 4,190 t of transactions in billets were recorded by SteelMint today against 6,670 t on 27 Jan.

The index moved downwards on account of lower bids and falling billets prices in the northern region - Punjab. However, in the latter half of the day, slight tightness in offers was observed and deals were made by a few major suppliers only in limited volumes.

Industry sources are expecting that semis prices are less likely to fall further on account of higher sponge prices. Thus, amidst lower margins with furnaces and less scope of price corrections in sponge iron, the billet makers may keep prices higher, especially in central region, 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) - Four 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 one trade was recorded at INR 47,800/t, and one deal each at INR 47,700/t, INR 47,650/t, and INR 47,600/t. The average price of these four transactions was INR 47,699/t and 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 47,722/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 47,711/t, rounded to INR 47,700/t exw.

Click for detailed methodology

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