SteelMint: Raipur billet index falls INR 550/t on thin trading - 7 Feb

SteelMint's daily steel billet index is assessed at INR 48,100/tonne (t) (- INR 550/t) exw Raipur on 7 Feb'22.

About 1,900 t of transactions in billets were recorded by SteelMint today against 3,600 t on 5 Feb.

The index moved down due to limited enquiries following a 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) - Six 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 these, three trades were recorded at INR 48,000/t, two deals at INR 48,100/t and one deal at INR 48,300/t. The average price of these six transactions was INR 48,084/t and given 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) -Five offers were reported in the trading window and considered as T2 inputs. The average price of these five was INR 48,140/t and given 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 48,112/t, rounded off to INR 48,100/t exw.

Click for detailed methodology

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