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Steel Rates Change Daily — How to Handle Billing and Stock

The steel trade behaves like the share market: one rate in the morning and another by evening. Bill a single load at yesterday's rate and you are ₹500 to ₹2,000 out of pocket. On top of that, every size from 8mm to 32mm carries its own rate and its own stock. This guide sets out a system for all of it.

1. Where the rate comes from

The mills — Tata, JSW, SAIL and the local rolling mills — send a rate list every morning, on WhatsApp or through your distributor. It quotes a basic rate per ton; your landed rate is that basic rate plus loading, freight and your own margin. Spend five minutes each morning working out your selling rate and updating it in the software.

2. Billing in kg while buying in quintals and tons

You buy in tons — one ton is ten quintals or 1,000 kg — and you sell in kilograms. Always bill in kg, because that is what the customer understands. Set the item unit to Kg in the software and enter the rate per kg: 500 kg at ₹62 comes to ₹31,000, with no calculator involved.

3. Create a separate item for each size

TMT 8mm, 10mm, 12mm, 16mm, 20mm and 25mm should each be a separate item with its own rate and its own stock. Do not create one generic item called Steel, or you will never know how much of each size is left. Update all the sizes together when the rate moves.

4. Working out weight from bundles

Keep the standard weights to hand: one 12m piece of 8mm is about 4.74 kg, 10mm about 7.4 kg, 12mm about 10.66 kg, 16mm about 18.96 kg and 20mm about 29.6 kg. Count the pieces in the bundle and multiply, or bill from the weighbridge slip. Explain your method to the customer and the argument never starts.

5. Builder credit runs into lakhs

A builder takes 10 to 20 tons a month and pays 45 to 60 days later. Bill every delivery with the vehicle number on it, record every payment, and send a statement on WhatsApp at month end. MaterialBill does all of this for you: daily rate updates, size-wise stock, the builder's ledger and the delivery challan.

6. Explaining your weight to the customer

Most disputes in the steel trade are about weight rather than rate, and they are avoidable by being explicit. Decide whether you bill from the weighbridge slip or from standard piece weights, say so before the sale, and print the basis on the bill. A customer who counts pieces in a bundle and multiplies by a published weight will arrive at your figure, and the conversation ends there. A customer who is simply given a total will always wonder. Keeping the standard weights on a printed sheet at the counter costs nothing and settles most of it before it starts.

7. Builder credit and the site payment cycle

A builder taking ten to twenty tons a month pays forty-five to sixty days later, and sometimes further, because his own money comes from a project. That means your steel business is financing his cash flow, and the exposure grows quietly because each individual load feels routine. Set a credit limit that reflects what you can actually carry through a slow quarter, record every delivery with a vehicle number, and send a statement on the first of every month. Those three habits are what separate steel dealers who grow from steel dealers who stall.

Frequently asked questions

What happens to old stock when the rate changes?
Always sell at today's rate, even if the stock was bought cheaper — that is simply how this trade works. You lose when the rate falls and gain when it rises, and it averages out. Track the purchase price separately so you can see the real profit.
What is the GST rate on steel?
18%, made up of CGST 9% and SGST 9%. Cement is at 28%, so when both appear on one bill each line takes its own rate, and the software applies them for you.
All of this is built into MaterialBill — start free and raise your first bill in two minutes.

Related reading

Sariya Steel Billing Software Features › Multi Unit Billing Features › Inventory Godown Shop Hardware Making a Quotation Making a Price List Staff Salary Structure

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