SteelMint: Raipur billet index rises by INR 850/t despite drop in trade volumes - 24 Dec

SteelMint's daily steel billet index is assessed at INR 42,800/tonne (t) (+INR 850) exw-Raipur on 24 Dec'21.

About 3,800 t of transactions in billets were recorded by SteelMint today against 5,220 t on 23 Dec.

Although the index increased, trade volumes continued to drop as buyers turned cautious.

Market participants informed that compared to 23 Dec, demand for finished steel products was quite low today. Hence, they opted to wait and watch before making purchase decisions.

A similar feedback has been received from sponge iron suppliers as demand with them was limited due to a significant hike in offers. Thus, overall spot trades weakened today, especially in the central region.

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 which four trades were recorded at INR 42,800/t, two at INR 43,000/t, two deal at INR 42,700/t and one deal each at INR 42,600/t and INR 42,900/t. The average price of these ten transactions was INR 42,783/t and given a 50% weightage in the final price calculation.
  
  
• 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 42,850/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 42,816/t, rounded to INR 42,800/t exw.

Click for detailed methodology

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