SteelMint: Raipur billet index rises on tight supplies - 28 Apr

SteelMint's daily steel billet index is assessed at INR 56,000/tonne (t) (+INR 800) exw Raipur on 28 April, 2022.

About 4,000 tonnes (t) of transactions in billets were recorded by SteelMint today as against 6,800 t on 27 April.

The index rose further on tight supplies amidst bearish market trends following a significant surge in steel prices in Punjab. This went some way into influencing buyers and prices rose sharply on a deal-to-deal basis.

Billet supplies in the central Indian spot market continued to tighten as production at most of the mid-sized plants was disturbed due to unscheduled power cuts.

On an average, the daily power outage currently is for 12-15 hours, which has led to a slight supply shortage of billet in the spot market.

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 at INR 56,000/t 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 56,000/t which is given a 50% weightage in the final price calculation. Apart from this two trades at INR 56,000/t were also recorded at 1:05 pm, and 2:00 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 55,975/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 55,988/t, rounded to INR 56,000/t exw.

Click for detailed methodology

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