SteelMint: Raipur billet index plunges INR 800/t on lower bids - 3 Dec

SteelMint's daily steel billet index is assessed at INR 40,200/tonne (t) (- INR 800) exw-Raipur on 3 Dec'21.

About 2,720 t of transactions in billets were recorded by SteelMint today against 3,800 t on 2 Dec.

The index fell sharply on account of lower bids following poor offtake of finished steel products. Trade discounts in the wire rod market in Raipur increased further today despite a drop in base offers by INR 700/t.

Market participants are expecting prices to soften further as supply remains strong amidst sluggish demand along with falling raw materials prices.

• 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 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 40,400/t, and one deal each at INR 40,500/t, INR 40,300/t, INR 40,200/t, INR 40,100/t, and INR 40,000/t. The average price of these seven transactions was INR 40,198/t and given a 50% weightage in the final price calculation. Apart from this one trade was recorded at INR 40,300/t at 13:30 pm but was excluded due to timing.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Twelve offers reported in the trading window and considered as T2 inputs. The average price of these twelve was INR 40,242/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 40,220/t, rounded to INR 40,200/t exw.

Click for detailed methodology

T1: Trade
T2: Offer/Bid/Indicative