SteelMint: Raipur billet index rises INR 1,100/t on firm demand - 30 May

SteelMint's daily steel billet index is assessed at INR 46,050/tonne (t) (+INR 1,100) exw-Raipur on 30 May 2022.

About 2,950 t of transactions in billets were recorded today as against 2,600 t on 28 May.

The index rose amidst the rise in prices in the northern region and firm demand.

However, sources informed that there is lack of confidence among participants about stability in (higher) offers due to weak demand for finished steel. Some sources said that offers might soften in the coming days as finished steel producers have lot of inventories.

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) - Four trades in the range of INR 46,000-46,400/t were recorded during the 2:30 pm to 5:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 46,057/t which is given a 50% weightage in the final price calculation. Apart from this one trade at INR 46,200/t was also recorded at 1:25 pm, but was excluded due to timing.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Fourteen offers reported in the trading window and considered as T2 inputs. The average price of these fourteen was INR 46,068/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 46,063/t, rounded to INR 46,050/t exw.

Click for detailed methodology

T1 - Trade, T2 - offer/bid/indicative, *Normalized price as per methodology