SteelMint: Raipur billet index slips on limited finished steel demand - 3 Aug

SteelMint's daily steel billet index is assessed at INR 50,000/tonne (t) (- INR 350/t) exw-Raipur on 3 August, 2022.

About 2,400 t of billet transactions were recorded today as against 6,500 t on 2 August.

The index moved downwards on account of low finished steel sales since yesterday along with the fall in prices in the northern region.

In addition, sponge iron buying enquiries were also poor despite a slight drop in offers.

SteelMint's daily price assessment for rebars fell by INR 300/t and sponge iron by INR 200/t, while wire rods prices declined by INR 400/t in Raipur.

SteelMint recorded about 700 t of wire rod transactions in Raipur against 1,700 t yesterday. Also, 1,800 t rebars deals were confirmed today against 2,100 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) - Four trades at INR 49,800-50,100/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 50,025/t which is given a 50% weightage in the final price calculation.
  
  

• 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 50,013/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 50,019/t, rounded to INR 50,000/t exw.

Click for detailed methodology

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