SteelMint: Raipur billet index rebounds despite low steel sales - 1 Jul

SteelMint's daily steel billet index was assessed at INR 49,400/tonne (t) (+ INR 400) exw-Raipur on 1 July, 2022.

About 2,900 t of transactions in billets were recorded today as against 2,350 t on 30 June.

The index rose today on account of the rally in prices in the northern region; however, spot billet trades remained low on account of weak finished steel sales.

Sources believe prices may soften soon if demand for finished steel products remains low. This may result in further improvement of billet supply in the spot market with a resumption in supply from the hot charging plants.

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) - Six trades in the range of INR 49,250-49,500/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 49,374/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Seven offers reported in the trading window and considered as T2 inputs. The average price of these seven was INR 49,414/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 49,394/t, rounded to INR 49,400/t exw.

Click for detailed methodology

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