SteelMint: Raipur billet index rises further, demand stays firm - 9 Mar

SteelMint's daily steel billet index is assessed at INR 61,100/tonne (t) (+INR 1,800) exw Raipur on 9 Mar'22.

About 3,900 t of transactions in billets were recorded by SteelMint today as against 4,400 t on 8 March.

The index rose further as suppliers kept offers higher and demand stayed firm with need-based buying.

However, it is noted that the major traders remained cautious today given the significant surge in offers and fear of price correction.

Meanwhile, looking at the bullish trends globally due to the spike in energy costs, it seems the scope for a major price fall in prices is limited.

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 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 two trades were recorded at INR 61,300/t, and two deals each at INR 61,200/t, and INR 61,000/t. The average price of these six transactions was INR 61,138/t and given a 50% weightage in the final price calculation. Apart from this one trade at INR 61,000/t was also recorded at 13:30 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 61,100/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 61,119/t, rounded to INR 61,100/t exw.

Click for detailed methodology

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