SteelMint: Raipur billet index rises slightly as finished steel demand improves - 8 Aug

SteelMint's daily steel billet index is assessed at INR 48,250/tonne (t) (+ INR 150/t) exw-Raipur on 8 August, 2022.

About 2,700 t of billet transactions were recorded today as against 1,600 t on 6 August.

The index inched up following improvement in bids with recovery in demand for finished steel products: TMT and wire rods. Billet offers rose slightly despite the fall in sponge iron prices in Raipur and steel prices in north India.

SteelMint's daily price assessment for rebar and wire rods remain unchanged, while sponge iron prices moved down by INR 100/t in Raipur.

SteelMint recorded trades of about 6,200 t of wire rod and around 6,000 t of rebar in Raipur today. These volumes were close to four- to five-fold higher than trades during the last weekend.

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) - Seven trades at INR 48,000-48,300/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 48,200/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Sixteen offers reported in the trading window and considered as T2 inputs. The average price of these sixteen was INR 48,264/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 48,232/t, rounded to INR 48,250/t exw.

Click for detailed methodology

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