SteelMint: Raipur billet index falls INR 900/t on sluggish demand - 28 Dec

SteelMint's daily steel billet index is assessed at INR 43,100/tonne (t) (-INR 900) exw-Raipur on 28 Dec'21.

About 600 t of transactions in billets were recorded by SteelMint today against 4,170 t on 27 Dec.

The index fell following limited demand and poor offtake of finished steel products. Buyers held their orders in expectation of a further fall in prices.

Despite healthy trade discounts in wire rod, buying enquiries remained poor today, SteelMint notes.

In addition, desperate sale of billets was observed by traders, as they floated offers that were cheaper by INR 400-500/t compared to the plants. This triggered a steady fall in offers in today's trading session.

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) - Three 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 two trades were recorded at INR 43,300/t, and one deal at INR 43,700/t. The average price of these three transactions was INR 43,300/t and given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Fourteen offers reported in the trading window and considered as T2 inputs. The average price of these fourteen was INR 42,945/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 43,123/t, rounded to INR 43,100/t exw.

Click for detailed methodology

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