- Sellers keep offers elevated, but cautious buying drags prices down
- Sponge iron remains supported despite weak buying, steel prices fall
BigMint’s billet index edged lower by INR 50/t d-o-d to INR 38,950/t exw-Raipur on 4 August 2026, as weak buying interest and weak finished steel demand limited trading activity across the semi-finished steel segment. Despite producers maintaining elevated offer levels, cautious procurement by rerollers resulted in only a marginal correction in billet prices.
Market activity remained sluggish throughout the session, with buyers largely adopting a wait-and-watch approach in anticipation of stronger downstream demand before committing to fresh billet purchases. Weak order inflows at rerolling mills continued to reduce procurement requirements, restricting most buyers to immediate production needs. The absence of meaningful restocking activity kept spot transactions limited and prevented billet prices from extending the previous week’s gains.
On the supply side, producers attempted to hold offers at higher levels, supported by firm raw material costs and earlier billet bookings to neighbouring markets. However, softer domestic demand and competitive pricing across key producing regions offset these supportive factors, resulting in a largely range-bound market with a slight downward bias.
Finished steel shows mixed trend
The finished steel market in Raipur remained mixed. Rebar prices increased by INR 200/t d-o-d, supported by selective bookings, while wire rod prices declined by INR 100/t amid weaker enquiries and cautious buying from end-users.
Sponge iron remains firm
Sponge iron prices in the Raipur cluster inched up by INR 50/t d-o-d. Although spot buying remained muted, producers maintained higher offer levels, supported by elevated raw material costs and expectations of improved demand following stronger buying activity in previous sessions.
The conversion spread between pellet-based direct reduced iron (PDRI) and billets for standalone induction furnaces in the Raipur cluster was assessed at INR 13,200/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) – Two trades at INR 38,900-39,000/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 38,940/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 38,933/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 38,936/t exw-Raipur, rounded off to INR 38,950/t exw.
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