- Widening bid-offers gap and limited enquiries weigh on semis
- Finished steel sees mixed trend, while sponge iron prices unchanged
BigMint’s billet index declined marginally by INR 100/t day-on-day to INR 38,650/t exw-Raipur on 23 June 2026, as limited spot buying activity and a widening bid-offers gap continued to pressure the semi-finished steel segment.
Market sentiment softened during the day amid weak enquiries and cautious procurement patterns. Buyers largely restricted purchases to immediate requirements and continued placing bids at lower levels, reflecting concerns over sluggish finished steel demand. The weak downstream market also weighed on billet consumption, resulting in modest price corrections.
Market scenario
Market participants reported that sellers are attempting to maintain billet and sponge iron offers at current levels, anticipating that pre-monsoon restocking activity could provide some support in the near term. However, buying interest remained subdued, with most participants unwilling to accept higher offers due to rising finished steel inventories and slow order inflows.
Adding to the pressure, competitive pricing from neighbouring regions has intensified in recent sessions. Suppliers from adjacent markets have increasingly targeted buyers with lower-priced offers, indirectly rising competition for local manufacturers and limiting the scope for price increases in Raipur.
Finished steel prices see mixed response
In Raipur, finished steel prices displayed a mixed trend. Rebar prices declined by INR 300/t d-o-d as weak end-user demand and limited enquiries continued to restrict market activity. In contrast, wire rod prices remained unchanged, supported by balanced supply and selective procurement.
Market participants noted that persistent weakness in finished steel demand and offtake, in turn impacting billet consumption.
Sponge iron prices remain firm
Sponge iron prices in the Raipur cluster remained stable despite cautious market sentiment. Buyers continued to place lower bids, while most suppliers maintained offer levels amid expectations of improved demand ahead of the monsoon season. Spot bookings were limited and confined to selective transactions concluded at negotiated levels, hilighting the ongoing gap between buyer expectations and seller targets.
The conversion spread from sponge iron (PDRI) to billets for standalone induction furnaces in the Raipur cluster 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) – Seven trades at INR 38,500-38,800/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 38,681/t, which was given a 50% weightage in the final price calculation.
- Other price indicators – bids/offers/indicatives (T2) – Fifteen offers were reported in the trading window and considered as T2 inputs. The average price of these fifteen was INR 38,660/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 38,670/t exw-Raipur, rounded off to INR 38,650/t exw.
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