SteelMint: Raipur billet index rises on demand recovery for finished steel - 9 Aug

SteelMint's daily steel billet index is assessed at INR 48,700/tonne (t) (+ INR 450/t) exw-Raipur on 9 August, 2022.

About 2,950 t of billet transactions were recorded today as against 2,700 t on 8 August.

The index rose on demand recovery for finished steel products, following which sponge iron and billet demand remained active during the second half today. This prompted producers to quote offers higher.

In addition, a sharp surge in prices in the northern region kept prices supported in central India.

SteelMint's daily price assessment for rebar rose by INR 200/t and wire rods by INR 400/t, while a slight rise of INR 100/t was seen in sponge iron in Raipur.

SteelMint recorded about 9,400 t of wire rod transactions in Raipur against 6,200 t yesterday. Also, 5,200 t rebar deals were confirmed today against 6,000 t yesterday.

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) - Five trades at INR 48,300-48,800/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 48,745/t which is given a 50% weightage in the final price calculation. Apart from this one trade at INR 48,200/t was also recorded at 1:46 pm, but was excluded due to timing.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Twelve offers reported in the trading window and considered as T2 inputs. The average price of these twelve was INR 48,614/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 48,680/t, rounded to INR 48,700/t exw.

Click for detailed methodology

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