SteelMint: Raipur billet index falls on limited enquiries, drop in sponge iron prices - 28 Mar

SteelMint's daily steel billet index is assessed at INR 56,800/tonne (t) (-INR 200) exw Raipur on 28 Mar'22.

About 1,400 t of transactions in billets were recorded by SteelMint today i.e. 28 Mar.

The index fell further on account of limited enquiries as well aggressive selling by manufacturers and resellers.

A majority of buyers withheld purchases due to the correction in prices of raw materials i.e. pellets and sponge iron (by INR 800-1,000/t) along with the expectation of further softening in offers. This led to poor buying of billets in the spot market and ultimately offers edged lower, SteelMint notes.

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) - One trade was recorded in the 2:30 pm to 5:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The one trade was recorded at INR 57,000/t. The average price of this one transaction was INR 57,000/t and given a 50% weightage in the final price calculation. Apart from this one trade at INR 57,000/t, was also recorded at 13:30 pm but was excluded due to timing.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Ten offers reported in the trading window and considered as T2 inputs. The average price of these ten was INR 56,600/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 56,800/t exw.

Click for detailed methodology

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