SteelMint: Raipur billet index falls slightly despite trades improving on lower offers - 27 May

SteelMint's daily steel billet index was assessed at INR 45,100/tonne (t) (-INR 100) exw-Raipur on 27 May 2022.

About 6,400 tonnes (t) of transactions in billets were recorded today as against 2,400 t on 26 May.

Although the index fell slightly spot trades improved. Falling stocks at mills forced producers to procure material to continue operations. Further improvement in trades as well as offers will depend on finished steel demand, sources informed SteelMint.

In Raipur today sponge iron and rebar offers fell by INR 500/t and INR 1,300/t respectively, as per SteelMint's daily assessment.

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) - Ten trades in the range of INR 44,900-45,300/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 45,112/t which is 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 twelve was INR 45,071/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 45,092/t, rounded to INR 45,100/t exw.

Click for detailed methodology

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