SteelMint: Raipur billet index falls on average demand - 30 Mar

SteelMint's daily steel billet index is assessed at INR 56,000/tonne (t) (-INR 300) exw Raipur on 30 Mar'22.

About 2,900 t of transactions in billets were recorded by SteelMint today as against 3,900 t on 29 March.

The index trended down on lower bids and slow demand as liquidity crunch has seized the market ahead of the fiscal year-end.

Sellers require immediate payment while the buyers prefer to postpone purchases resulting in a mismatch in trade dynamics trigerring a fall in prices.

That apart, a decline in domestic iron ore pellets prices has turned trends sluggish, which led to poor buying from stockists, SteelMint notes.

Market sources expect that full-fledged trades will resume from next week, which is expected to result in proper supply-demand balance in the spot market.

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) - Five 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 56,000/t, and one deal each at INR 55,800/t, INR 55,700/t, and INR 55,500/t. The average price of these five transactions was INR 56,000/t and given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) -Twelve offers reported in the trading window and considered as T2 inputs. The average price of these 12 was INR 55,978/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 55,989/t, rounded to INR 56,000/t exw.

Click for detailed methodology

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