SteelMint: Raipur billet index slumps INR 750/t on limited enquiries, weak finished steel demand - 5 Aug

SteelMint's daily steel billet index is assessed at INR 48,800/tonne (t) (- INR 750/t) exw-Raipur on 5 August, 2022.

About 450 t of billet transactions were recorded today as against 2,350 t on 4 August.

The index moved down on limited enquiries and spot trades amid poor demand in finished steel products and sluggish sentiments on constant drop in steel prices in the northern region.

SteelMint's daily price assessment for rebars and wire rods plummeted by INR 800/t, while sponge iron prices fell by INR 500/t in Raipur.

SteelMint recorded around 600 t wire rod transactions against 850 t yesterday. Meanwhile, 780 t rebar deals were confirmed today against 1,100 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) - Two trades at INR 48,800-49,000/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 48,800/t which is given a 50% weightage in the final price calculation.
  
  

• Other Price Indicators - bids/offers/indicative (T2) - Ten offers reported in the trading window and considered as T2 inputs. The average price of these ten was INR 48,843/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 48,822/t, rounded to INR 48,800/t exw.

Click for detailed methodology

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