SteelMint: Raipur billet index rises further despite limited enquires - 17 Feb

SteelMint's daily steel billet index is assessed at INR 48,500/tonne (t) (+INR 600) exw-Raipur on 17 Feb'22.

About 2,000 t of transactions in billets were recorded by SteelMint today against 9,600 t on 16 Feb.

While the index surged trade enquiries slowed down as buyers felt the prices were quite high in the backdrop of finished steel demand, which remained low on floated offers.

Participants are expecting prices should come down slightly as bookings have slowed down on current offers.

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) - Three 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 48,500/t, and one deal at INR 48,800/t. The average price of these three transactions was INR 48,530/t and given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Thirteen offers reported in the trading window and considered as T2 inputs. The average price of these thirteen was INR 48,514/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 48,522/t, rounded to INR 48,500/t exw.

Click for detailed methodology

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