- Many IF units reduce output, lower operating rates
- Finished steel prices slip by INR 100/t in Raipur
BigMint’s billet index recorded a marginal decline of INR 150/tonne (t) d-o-d, settling at INR 34,950/t exw-Raipur on 12 November 2025. The market softened as weak downstream demand and tepid inquiries kept overall sentiment under pressure. Some deals were concluded at slightly lower prices, while most buyers continued to adopt a wait-and-watch approach amid uncertainty over near-term demand recovery.
Trading remained limited, as market participants refrained from large orders, preferring to monitor finished steel price trends before committing to further bookings. Sellers were compelled to reduce offers marginally to stimulate buying interest, but the response remained muted. Many induction furnace (IF) operators adjusted production and reduced operating rates due to squeezed conversion margins and weak end-user demand.
In Raipur, the downturn in billet prices reflected continued weakness in the value chain. While sponge iron offers softened further, finished steel failed to show any meaningful improvement, leading to tight liquidity conditions in the local market. Dealers mentioned that despite expectations of restocking activity ahead of mid-month demand, sentiment remains cautious due to the ongoing lag between production and consumption.
Market highlights
- Finished steel: Rebar and wire rod prices in Raipur dropped by INR 100/t d-o-d. Market activity remained limited, with participants citing weak offtake from construction and infrastructure segments.
- Sponge iron: Prices corrected by INR 200/t in Raipur, pressured by competitive offers from neighbouring regions, leading to a narrow trading range.
The conversion spread from sponge iron (PDRI) to billets for standalone induction furnaces in Raipur was assessed at INR 12,100/t, indicating squeezed producer margins in a weakening market.
Rationale
This index is derived based on transactions, offers, bids, and indicative price data sets. Transactions are considered 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) – Two trades at INR 34,900/t were recorded during the 2:30 pm to 5:30 pm BigMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 34,900/t, which was given a 50% weightage in the final price calculation.
- Other price indicators – bids/offers/indicatives (T2) – Fourteen offers were reported in the trading window and considered as T2 inputs. The average price of these fourteen was INR 34,975/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 34,937/t exw-Raipur, rounded off to INR 34,950/t exw.
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