SteelMint: Billet index plummets by INR 3,000/t ($39) post govt's revision in duty structure - 23 May

SteelMint's daily steel billet index was assessed at INR 47,600/tonne (t) (-INR 3,000) exw Raipur on 23 May 2022.

About 2,600 t of transactions in billets were recorded today as against 1,850 t on 21 May.

The index fell further on account of sluggish trends due to recently imposed export duties and revision of import duties on several commodities by the Indian government. This created panic among market participants, with offers ultimately falling sharply in today's trading due to aggressive billet sales by the resellers and producers.

Further, sources are expecting semis prices to remain under pressure due to weak demand for finished steel products and unclear market trends.

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 47,500-47,700/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 47,562/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Fifteen offers reported in the trading window and considered as T2 inputs. The average price of these fifteen was INR 47,627/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 47,595/t, rounded to INR 47,600/t exw.

Click for detailed methodology

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