- Higher sponge iron prices amid elevated raw material costs
- Finished steel prices strengthen, while modest semis demand
BigMint’s billet index extended its upward momentum on 3 August 2026, rising by INR 450/t d-o-d to INR 39,000/t exw-Raipur, as higher raw material costs and firm producer offers continued to support the market. Despite the sharp increase, overall trading activity remained balanced, with buyers limiting purchases to immediate requirements amid uncertainty over the sustainability of higher price levels.
Market participation remained modest throughout the session. Consumers largely booked material to meet urgent production needs while closely monitoring developments in the finished steel segment before committing to larger volumes. The recent recovery in billet prices prompted buyers to adopt a cautious approach, resulting in selective transactions across the semi-finished steel market.
On the supply side, producers raised spot offers following improved buying interest in recent sessions. Higher sponge iron prices, tighter raw material availability and elevated production costs provided support to billet prices. However, the absence of a broad-based recovery in finished steel demand across key consuming regions continued to cap stronger price gains. Market participants noted that while supply-side fundamentals remain supportive, sustained upside in billet prices will depend on a meaningful improvement in downstream steel consumption.
Finished steel prices strengthen
The finished steel market in Raipur recorded another round of gains. Rebar prices increased by INR 700/t d-o-d, while wire rod prices rose by INR 400/t, supported by improved market sentiment and better booking activity during the session. The recovery in long steel prices provided additional support to billet demand.
Sponge iron gains on modest demand
Sponge iron prices in the Raipur cluster increased by INR 400/t d-o-d, supported by a modest improvement in buying activity and constrained spot availability. Rising replacement costs enabled producers to lift offers, although buyers remained cautious at elevated price levels and continued to procure primarily against immediate requirements.
The conversion spread between pellet-based direct reduced iron (PDRI) and billets for standalone induction furnaces in the Raipur cluster narrowed further to INR 13,300/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 38,800-39,100/t was 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 38,952/t, which was given a 50% weightage in the final price calculation.
- Other price indicators – bids/offers/indicatives (T2) – Sixteen offers were reported in the trading window and considered as T2 inputs. The average price of these sixteen was INR 39,058/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 39,005/t exw-Raipur, rounded off to INR 39,000/t exw.
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