SteelMint: Raipur billet index rises further on active demand - 24 Jan

SteelMint's daily steel billet index is assessed at INR 46,700/tonne (t) (+850) exw Raipur on 24 Jan'22.

About 4,800 t of transactions in billets were recorded by SteelMint today against 3,030 t on 22 Jan.

The index rose further on active demand and higher offers floated by the suppliers due to firm raw materials prices. Thus, despite slow demand for finished steel products, billet prices remained strong across regions.

In addition, a continuous rally in offers in Punjab, north India are supporting steel prices across regions, SteelMint notes.

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 46,800/t, three deals at INR 46,600/t, two deals at INR 46,700/t, and one deal at INR 46,650/t. The average price of these 10 transactions was INR 46,670/t and given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) -Eleven offers were reported in the trading window and considered as T2 inputs. The average price of these 11 was INR 46,771/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 46,721/t, rounded to INR 46,700/t exw.

Click for detailed methodology

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