SteelMint: Raipur billet index rises as trade volumes improve further - 12 Jan

SteelMint's daily steel billet index is assessed at INR 44,850/tonne (t) (+50) exw Raipur on 12 Jan'22.

About 7,320 t of transactions in billets were recorded by SteelMint today against 6,050 t on 11 Jan.

The index remained supported following active demand and firming up of offers through the manufacturers, while demand for finished steel products continues to remain moderate.

Higher raw material offers and rising steel prices in the northern regions, especially the Punjab market, indicates further strengthening in billet prices.

However, subdued demand for finished steel products seems to be creating a lack of confidence among market participants, SteelMint notes.

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) - Eight 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 four trades were recorded at INR 44,900/t, and two deals each at INR 45,000/t, and INR 44,800/t. The average price of these eight transactions was INR 44,846/t and given a 50% weightage in the final price calculation. Apart from this two trades at INR 44,750/t, and INR 44,600/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) - Eight offers reported in the trading window and considered as T2 inputs. The average price of these eight was INR 44,820/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 44,833/t, rounded to INR 44,850/t exw.

Click for detailed methodology

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