SteelMint: Raipur billet index falls on cautious buying - 1 Jun

SteelMint's daily steel billet index is assessed at INR 44,200/tonne (t) (-INR 800) exw-Raipur on 1 Jun 2022.

About 4,100 tonnes (t) of transactions in billets were recorded today as against 3,100 t on 31 May.

The index saw a downtrend as bids continued to drop with market participants adopting a cautious stance when it came to procuring material, citing subdued demand in the finished steel products segment on sluggish market trends.

Due to poor domestic sales, the producers are exploring export markets. A few market participants informed that deals to Nepal have been concluded recently.

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) - Seven trades in the range of INR 43,600-44,300/t were recorded during the 2:30 pm to 5:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 44,197/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 44,230/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 44,214/t, rounded to INR 44,200/t exw.

Click for detailed methodology

T1 - Trade, T2 - offer/bid/indicative, *Normalized price as per methodology