SteelMint’s daily billet index is assessed at INR 42,900/t, exw Raipur, on 7 Jun’21 – down by INR 400/t on day. A total of 3,170 t of trade in steel billets was recorded today against 1,600 t on Saturday i.e. 5 Jun.
The index continues to drift downwards owing to low bids quoted by re-rollers amid measured finished steel demand. In addition, price corrections in the northern region such as Punjab have somehow affected trade across regions.
Meanwhile, news of power cut at Raigarh’s Punjipatra industrial area in Central India is expected to create some room for producers to raise billet prices temporarily, as with power curtailment furnace operations are impacted, including operations at rolling mills.
- 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 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, three trades were recorded at INR 43,000/t, two at INR 43,200/t and one deal each at INR 42,800/t & INR 43,100/t. The average price of these seven transactions was INR 42,985/t and given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Nine offers reported in the trading window and considered as T2 inputs. The average price of these nine was INR 42,842/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 42,913/t, rounded to INR 42,900/t exw.
Click for detailed methodology
T1: Trade
T2: Offer/Bid/Indicative
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