- Cautious procurement prevails in billet market
- Finished steel prices drop INR 400-500/t in Raipur
BigMint’s billet index declined further by INR 300/t d-o-d to INR 40,850/t exw-Raipur on 20 January 2026, as buying interest remained muted despite sellers lowering offers. Weak downstream demand continued to weigh on sentiment, limiting participation in the semi-finished steel market.
In Raipur, trading activity stayed largely confined to hand-to-mouth procurement, with only a few spot deals reported during the session. Market participants noted that persistent softness in finished steel demand forced billet producers to trim prices in an attempt to stimulate buying, though confidence among buyers remains fragile.
“Offers are lower, but there is no urgency to build inventory at this stage,” a local trader said, pointing to poor visibility surrounding near-term demand.
Volatility in north India has added further uncertainty. However, enquiry levels stayed subdued, as most consumers preferred to delay fresh purchases until clearer demand signals emerged.
Market trends:
Finished steel prices in Raipur saw a sharp correction. Rebar offers fell by around INR 400/t d-o-d, while wire rod prices dropped by INR 500/t, reflecting muted end-user demand and weak retail offtake.
Sponge iron prices in Raipur also declined by INR 400/t d-o-d, with limited spot bookings reported.
The P-DRI to billet conversion spread for standalone induction furnaces in Raipur was assessed at INR 15,850/t, indicating relatively stable producer margins despite the fall in output prices.
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) – Four trades at INR 40,800-40,900/t were recorded during the 10:30 am to 5:30 pm BigMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 40,808/t, which was given a 50% weightage in the final price calculation.
- Other price indicators – bids/offers/indicatives (T2) – Twenty offers were reported in the trading window and considered as T2 inputs. The average price of these twenty was INR 40,842/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 40,825/t exw-Raipur, rounded off to INR 40,850/t exw.
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