SteelMint’s daily steel billet index was assessed at INR 49,250/tonne (t) (- INR 350) exw-Raipur on 29 June, 2022.
About 1,000 tonne (t) of transactions in billets were recorded today as against 6,400 t on 28 June.
The index moved down after rising significantly on account of poor buying enquiries as a majority of buyers resisted booking material at such high offers against the backdrop of dull finished steel sales and weak sentiments on declining steel prices in Punjab, north India.
Thus, there was a sharp drop in spot billet trade volumes. However, the decline in prices was not as sharp compared to other locations as supply shortage of billets remains in the Raipur market, especially for ready-to-dispatch material due to limited supply by a few major plants.
However, it seems that billet supply may improve, if demand for finished steel products remains low.
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 in the range of INR 49,300-49,400/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 49,300/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Fifteen offers reported in the trading window and considered as T2 inputs. The average price of these fifteen was INR 49,222/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 49,261/t, rounded to INR 49,250/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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