SteelMint: Raipur billet index rises by INR 300/t on renewed buying - 19 Jan

SteelMint's daily steel billet index is assessed at INR 45,800/tonne (t) (+300) exw Raipur on 19 Jan'22.

About 5,150 t of transactions in billets were recorded by SteelMint today against 1,100 t on 18 Jan.

The index rebound following recovery in demand on optimistic trends in the market amidst strengthening raw material prices.

Trader sources expressed hope that sponge prices should remain strong on account of strengthening raw material prices.

Sources also mentioned that NMDC, India's largest iron ore miner, is likely to revise iron ore prices soon due to the uptrend in pellet and sponge iron prices.

Sponge suppliers, therefore, are likely to keep prices high, especially in central India, and billet prices should find some support as a result.

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) - Ten 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 these four were recorded at INR 45,700/t, two deals at INR 45,800/t, and one deal each at INR 45,950/t, INR 45,900/t, INR 45,750/t, and INR 45,500/t. The average price of these ten transactions was INR 45,804/t and given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Fourteen offers reported in the trading window and considered as T2 inputs. The average price of these 14 was INR 45,767/t, which was given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 45,785/t, rounded to INR 45,800/t exw.

Click for detailed methodology

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