SteelMint: Raipur billet index falls steeply on lack of bids - 12 Mar

SteelMint's daily steel billet index is assessed at INR 57,000/tonne (t) (-INR 2,500) exw Raipur on 12 Mar'22.

About 1,000 t of transactions in billets were recorded by SteelMint today as against 1,300 t on 11 March.

The index moved down on paucity of enquiries following the price correction in the Punjab market.

In addition, the key factor behind the sharp price correction in Raipur billet market was aggressive selling through a Raigarh-based plant, which had slashed offers by INR 2000-2,500/t, d-o-d. The market share of this plant in the Raipur spot market is approximately 30%.

Thus, other suppliers were forced to cut prices to attract buyers, leading to sharp price correction.

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) - Two trades were recorded in the 11:30 am to 3:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. All the two trades were recorded at INR 57,000/t. The average price of these two transactions was INR 57,000/t and 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 56,956/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 56,978/t, rounded to INR 57,000/t exw.

Click for detailed methodology

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