SteelMint: Raipur billet index rises despite lower bids - 7 Apr

SteelMint's daily steel billet index is assessed at INR 55,150/tonne (t) (+INR 350) exw Raipur on 7 Apr'22.

About 2,000 t of transactions in billets were recorded by SteelMint today as against 4,500 t on 6 April.

The index rebounded as suppliers kept offers higher amidst healthy demand during the closing hours yesterday. However, with prices starting to fall in the northern region this afternoon, buyers held their bids and ultimately spot buying and bids edged lower.

Finished steel demand continues to remain moderate even as a slight fluctuation was seen in coal prices resulting in volatility in semis prices, 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) - Two 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 one trade was recorded at INR 55,300/t, and one deal at INR 55,000/t. The average price of these two transactions was INR 55,164/t and given a 50% weightage in the final price calculation. Apart from this one trade at INR 55,400/t was also recorded at 2:00 pm but was excluded due to timing.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Eleven offers reported in the trading window and considered as T2 inputs. The average price of these eleven was INR 55,178/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 55,171/t, rounded to INR 55,150/t exw.

Click for detailed methodology

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