SteelMint: Raipur billet index plummets on bid-offer disparity - 16 May

SteelMint's daily steel billet index was assessed at INR 51,350/tonne (t) (-INR 1,450) exw Raipur on 16 May 2022.

About 1,400 t of transactions in billets were recorded by SteelMint today as against 920 t on 14 May.

The index dropped further due to bid-offer disparities amidst a sluggish outlook.

A few buyers floated bids lower by around INR 1,000/t compared to offers on expectations of a further price correction due to poor offtake of finished steel products and rising inventories with manufacturers. This affected spot trades and prices of billet, 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) - Three trades in the range of INR 51,300-51,700/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 51,433/t which is given a 50% weightage in the final price calculation. Apart from this one trade at INR 51,700/t was also recorded at 2:17 pm, but was excluded due to timing.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Twenty offers reported in the trading window and considered as T2 inputs. The average price of these twenty was INR 51,255/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 51,344/t, rounded to INR 51,350/t exw.

Click for detailed methodology

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