- Power tariff hike supports offers, while weak buying limits upside
- Finished steel prices increase, but billet demand remains restrained
BigMint’s billet index edged up by INR 100/t d-o-d to INR 38,800/t exw-Raipur on 16 June 2026, supported by the recent industrial power tariff hike announced by the Chhattisgarh State Electricity Regulatory Commission, effective 1 July 2026. However, demand in the semi-finished steel segment remained weak, limiting the extent of the price recovery.
Market participants reported that sellers attempted to raise billet offers in response to expectations of higher production costs and firm sentiment. However, weaker cues from neighbouring markets and lower bids from buyers restricted upward movement, keeping trading activity range-bound. Procurement remained selective as buyers continued to exercise caution amid uncertain downstream demand.
Finished steel prices strengthen
In Raipur, finished steel prices moved higher, supported by moderate restocking activity. Rebar and wire rod prices increased by INR 200/t d-o-d as traders replenished inventories following recent corrections. Market participants noted that a slight improvement in enquiries supported the price uptick.
Sponge iron prices edge up
Sponge iron prices in the Raipur cluster increased marginally by INR 50/t. Despite the rise, buying activity remained restrained as buyers continued to seek lower-priced material. A persistent gap between buyer bids and seller expectations limited market activity.
The conversion spread from sponge iron (PDRI) to billets for standalone induction furnaces in Raipur was assessed at INR 14,750/t.
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 38,800/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 38,800/t, which was given a 50% weightage in the final price calculation.
- Other price indicators – bids/offers/indicatives (T2) – Eighteen offers were reported in the trading window and considered as T2 inputs. The average price of these eighteen was INR 38,842/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 38,821/t exw-Raipur, rounded off to INR 38,800/t exw.
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