SteelMint: Raipur billet index rises on firm demand - 3 Jun

SteelMint's daily steel billet index is assessed at INR 45,300/tonne (t) (+INR 700) exw-Raipur on 3 June 2022.

About 3,450 tonnes (t) of transactions in billets were recorded today as against 3,900 t on 2 June.

The index rose further on account of firm demand and the rally in steel prices in the northern region during the first half today. However, the decline in offers later on resulted in a fall in bids, although spot trades remained firm.

Sources are expecting billet prices to remain volatile as coal prices remain high. Finished steel demand continues to remain subdued and this is leading to fluctuation in demand and prices of semi-finished steel products.

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 in the range of INR 45,200-45,500/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 45,262/t which is given a 50% weightage in the final price calculation. Apart from this one trade at INR 45,600/t was also recorded at 2:16 pm, but was excluded due to timing.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Eleven offers reported in the trading window and considered as T2 inputs. The average price of these eleven was INR 45,370/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 45,316/t, rounded to INR 45,300/t exw.

Click for detailed methodology

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