SteelMint: Raipur billet index plummets on lower bids, dull finished steel sales - 19 Jul

SteelMint's daily steel billet index slid to INR 48,000/tonne (t) (- INR 850) exw-Raipur on 19 July, 2022.

About 800 t of transactions were recorded today as against 1,750 t on 18 July.

The index dropped sharply on account of lower bids along with dull finished steel sales. Moreover, the key factor that weighed on the buying interest was the constant drop in billet prices in the northern region during the morning trade session.

Thus, only need-based bookings were placed and buying for future bookings remained absent, 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 at INR 48,000-48,200/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 48,000/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Fourteen offers reported in the trading window and considered as T2 inputs. The average price of these fourteen was INR 48,044/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 48,022/t, rounded to INR 48,000/t exw.

Click for detailed methodology

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