- Weak finished steel demand drags semis prices lower
- Sponge iron correction offers marginal margin relief
BigMint’s billet index declined further by INR 100/t d-o-d to INR 39,900/t exw-Raipur on 25 February 2026, extending the downtrend as restrained procurement and thin enquiries continued to weigh on the semi-finished steel market.
Market sentiment remained subdued throughout the session, with buyers limiting purchases to immediate requirements amid ongoing weakness in finished steel demand. Mills reported a lack of momentum in enquiries, forcing sellers to trim spot offers to secure limited bookings. Despite successive price reductions, buying interest showed no meaningful improvement, underscoring fragile consumption trends.
Most transactions were concluded at negotiated levels below prevailing offers, reflecting aggressive bidding from buyers. The sustained correction in finished steel prices spilled over into billets, prompting producers to adopt conservative pricing strategies.
A Raipur-based trader said, “Billet has slipped below INR 40,000/t, but without a recovery in finished steel offtake, demand remains weak in semi-finished segment.”
Finished steel prices under pressure
In Raipur, rebar prices remained largely unchanged, while wire rod prices declined by INR 200/t d-o-d, mirroring weak end-user demand and restricted trade activity. Procurement remained strictly need-based.
Sponge iron corrects sharply
Sponge iron prices in Raipur dropped by INR 400/t d-o-d, as sellers aligned offers with lower bids. Despite the correction, booking volumes remained limited, reflecting subdued semi-finished demand.
The conversion spread from pellet-based sponge iron (PDRI) to billets for standalone induction furnaces in Raipur was assessed at around INR 13,800/t, indicating slight improvement in producer margins.
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) – Three trades at INR 39,800-40,100/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 39,944/t, which was given a 50% weightage in the final price calculation.
Other price indicators – bids/offers/indicatives (T2) – Seventeen offers were reported in the trading window and considered as T2 inputs. The average price of these seventeen was INR 39,892/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 39,918/t exw-Raipur, rounded off to INR 39,900/t exw.
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