SteelMint's billet index dips INR 500/t on weak demand - 22 Jun

SteelMint's daily billet index is assessed at INR 41,900/t (-500/t), exw Raipur, on 22 Jun'21. Around 2,300 t of transactions in steel billet were recorded today against 2,210 t yesterday.

The index fell further due to weak demand following poor offtake in the finished steel segment on seasonal slowdown.

Furthermore, trader sources are expecting prices to remain under pressure. However, low conversion spreads (margins) remain a big concern which could force producers to cut production to adjust to supply-demand chains.

• 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 were recorded in the 2:30 pm to 5:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. Out of which two trades were recorded at INR 42,000/t, and one deal each at INR 42,100/t, INR 41,900/t and INR 41,800/t. The average price of these five transactions was INR 41,939/t and given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Thirteen offers reported in the trading window and considered as T2 inputs. The average price of these thirteen was INR 41,905/t and given a 50% weightage in the final price calculation.
  
  

The final price for billet exw Raipur was at INR 41,922/t, rounded to INR 41,900/t exw.

Click for detailed methodology

T1: Trade
T2: Offer/Bid/Indicative