SteelMint: Raipur billet index rebounds on buoyant enquiries - 22 Jan

SteelMint's daily steel billet index is assessed at INR 45,850/tonne (t) (+150) exw Raipur on 22 Jan'22.

About 3,030 t of transactions in billets were recorded by SteelMint today against 1,300 t on 21 Jan.

The index recovered on renewed buying as well as slight supply shortage of billets in the spot market if prompt despatch is taken into consideration.

In addition, price rise in the northern region, Punjab, remained a key factor that boosted prices across markets.

Market participants are not looking at any major price correction, given strong raw materials prices and availability of sponge iron and billets in the spot 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) - Five trades were recorded in the 11:30 am to 3:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. Out of which three trades were recorded at INR 45,800/t, and one deal each at INR 46,000/t, and INR 45,850/t. The average price of these five transactions was INR 45,821/t and given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) -Fourteen offers were reported in the trading window and considered as T2 inputs. The average price of these fourteen was INR 45,892/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 45,857/t, rounded to INR 45,850/t exw.

Click for detailed methodology

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