SteelMint: Raipur billet index falls INR 900/t on lower bids, dull steel sales - 16 July

SteelMint's daily steel billet index was assessed at INR 48,700/tonne (t) (- INR 900) exw-Raipur on 16 July, 2022.

About 3,200 t of transactions were recorded today as against 1,800 t on 15 July.

The index dropped as bids continued to remain low amidst assumptions of softening offers in the coming days on a slight rise in selling pressure over mid-sized plants. This coupled with dull finished steel sales led to a sharp fall in spot billet prices.

SteelMint's daily price assessment of rebar fell by INR 400/t, wire rod by INR 1,000/t and sponge iron by INR 600/t in Raipur on sluggish demand.

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) - Eight trades at INR 48,500-49,000/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 transactions was INR 48,553/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Thirteen offers reported in the trading window and considered as T2 inputs. The average price of these thirteen was INR 48,867/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 48,710/t, rounded to INR 48,700/t exw.

Click for detailed methodology

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