SteelMint’s billet index rises INR 200/t on supply crunch in spot market

SteelMint’s daily billet index is assessed at INR 43,300/t, exw Raipur, on 11 Jun’21 – up by INR 200/t ($3) on day. A total of 5,050 t of transactions in steel billet were recorded today against 5,500 t yesterday i.e. 10 Jun.

The index moved up further on active trade along with prevailing supply crunch in the spot market due to closed furnaces in Raigarh. Meanwhile, rising prices in the northern region, Punjab, was a major factor behind the price rally.

• 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) – Eight 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 43,250/t, two at INR 43,100/t, and one deal each at INR 43,400/t, INR 43,300/t, INR 43,200/t and INR 43,000/t. The average price of these eight transactions was INR 43,237/t and 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 43,328/t and given a 50% weightage in the final price calculation.