SteelMint's billet index slips slightly as buyers turn cautious - 1 Jul

SteelMint’s daily billet index is assessed at INR 40,750/t, exw-Raipur, on 1 Jul’21, down INR 50/t on day.

SteelMint recorded a total of 3,730 t of transactions in steel billet today as against 5,040 t on 30 Jun.

The index fell slightly as demand trended lower compared to yesterday. Sources reported that amidst unclear market trends, a few buyers had postponed purchases. The market chatter today was that the primary mills are likely to trim finished long steel prices for Jul’21 deliveries.

Finished steel inventories with the secondary mills have nearly doubled as against an average of five to 10 days earlier.

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 40,700/t, two at INR 40,900/t, one deal at INR 40,800/t and one at INR 40,750/t. The average price of these seven transactions was INR 40,734/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 40,767/t and given a 50% weightage in the final price calculation.

The final price for billet exw Raipur was at INR 40,750/t exw.

Click for detailed methodology