SteelMint: Raipur billet index hits over one-month high on active demand - 8 July

SteelMint's daily steel billet index was assessed at INR 51,000/tonne (t) (+ INR 1,000) exw-Raipur on 8 July 2022.

The index has hit over one month-high as prevailing offers were last seen in the third week of May.

About 4,300 t of transactions were recorded today as against 4,800 t on 7 July.

The index jumped on the back of active demand and strengthening steel prices in Punjab. However, it seems that the prevailing offers are less likely to sustain as finished steel demand is need-based and no bulk order is being placed.

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 at INR 50,500-51,000/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 50,985/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Eight offers reported in the trading window and considered as T2 inputs. The average price of these eight was INR 51,000/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 50,993/t, rounded to INR 51,000/t exw.

Click for detailed methodology

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