- Weak finished steel demand continues to weigh
- Sponge iron prices soften further on lower bids
BigMint’s billet index declined sharply by INR 350/t d-o-d to INR 39,500/t exw-Raipur on 19 May 2026, touching its lowest level in four months amid persistent weakness in both semi-finished and finished steel markets.
The last time billet prices were assessed nearest levels on 13 January 2026, when offers were recorded at INR 39,300/t exw-Raipur. The continued correction over the past few trading sessions continued pressure on sellers, and cautious procurement by buyers.
Market participants indicates that billet enquiries remained limited, with buyers seeking lower prices amid bearish sentiment across neighbouring markets. Traders noted that despite continuous price corrections, spot bookings remained weak as participants refrained from aggressive procurement due to uncertain finished steel demand.
However, some market participants expect a gradual improvement in the finished steel segment in the coming weeks, which could support semi-finished steel demand and aid billet prices.
Finished steel prices extend decline
In Raipur, finished long steel prices weakened further on muted demand and slow market activity. Rebar and wire rod prices declined by INR 300-500/t d-o-d as weak enquiries and cautious buying continued to weigh on trade volumes. Market participants said lower spot offers also failed to trigger improvement in bookings.
Sponge iron prices soften further
Sponge iron prices in the Raipur cluster declined by INR 250/t d-o-d as suppliers lowered offers to stimulate buying interest. However, buyers continued to place lower bids, citing weak market sentiment and slow downstream demand.
The conversion spread from sponge iron (PDRI) to billets for standalone induction furnaces in Raipur was assessed at INR 14,300/t on 19 May.
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) – One trade at INR 39,500/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 39,500/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 39,531/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 39,515/t exw-Raipur, rounded off to INR 39,500/t exw.
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