SteelMint: Raipur billet index plummets despite improved trades - 25 Mar

SteelMint's daily steel billet index is assessed at INR 57,000/tonne (t) (-INR 1,300) exw Raipur on 25 Mar'22.

About 5,150 t of transactions in billets were recorded by SteelMint today as against 4,100 t on 24 March.

The index fell sharply even as spot trades improved during the closing hours as participants took positions, analysing the bottom line in offers and hoping for a price recovery.

In addition, trade discounts in the finished steel segment were edged slightly lower during the second half today as optimism prevailed in the market. Overall enquiries increased today, 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) - Four trades were recorded in the 2:30 pm to 5:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. Out of which two trades were recorded at INR 56,800/t. and one deal each at INR 57,000/t, and INR 56,900/t. The average price of these four transactions was INR 56,850/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 57,111/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 56,981/t, rounded to INR 57,000/t exw.

Click for detailed methodology

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