SteelMint: Raipur billet index rebounds on improvement in bids - 2 Jun

SteelMint's daily steel billet index is assessed at INR 44,600/tonne (t) (+INR 400) exw-Raipur on 2 June 2022.

About 3,900 tonnes (t) of transactions in billets were recorded today as against 4,100 t on 1 June.

The index rebounded following improvement in bids. However, most of the deals were done at lower prices, while on revised (higher) offers, buyers held fresh bookings.

Furthermore, the rise in billet prices is not very likely as demand for finished products remains subdued and due to the approaching monsoons the major buyers are cautious and booking material as per needs, sources informed SteelMint.

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 44,300-44,700/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 44,511/t which is given a 50% weightage in the final price calculation.

Other Price Indicators - bids/offers/indicative (T2) - Nine offers reported in the trading window and considered as T2 inputs. The average price of these nine was INR 44,656/t and given a 50% weightage in the final price calculation.

The final price for billet exw Raipur was at INR 44,584/t, rounded to INR 44,600/t exw.

Click for detailed methodology

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