SteelMint: Raipur billet index rallies despite moderate demand - 1 Apr

SteelMint's daily steel billet index is assessed at INR 56,900/tonne (t) (+INR 1,100) exw Raipur on 1 Apr'22.

About 2,900 t of transactions in billets were recorded by SteelMint today as against 4,110 t on 31 March.

The index rallied today, following a sharp surge in prices in north India. However, buyers opted to wait awhile due to higher prices as demand for finished steel products remained moderate. Thus, spot trades continue to edge lower.

Despite moderate demand, market participants feel that billet prices in the central region are likely to remain volatile or may find support as the supply chain remained constrained on curtailed production due to seasonal power shortage even as a few plants have shut their furnaces due to better price realisation obtained from selling power in the exchange market.

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) - One trade was recorded in the 2:30 pm to 5:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The one trade was recorded at INR 57,000/t. The average price of this one transaction was INR 57,000/t and given a 50% weightage in the final price calculation. Apart from this one trade at INR 56,800/t, and one deal at INR 57,100/t were also recorded at 1:30 pm and 2:00 pm but was excluded due to timing.
  
  
• 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 56,836/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 56,918/t, rounded to INR 56,900/t exw.

Click for detailed methodology

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