- Weak finished steel margins continue to weigh on billet demand
- Rolling mills curtail production as compressed spreads pressure
BigMint’s billet index declined by INR 150/t d-o-d to INR 38,800/t exw-Raipur on 5 August 2026, as weak buying interest and subdued downstream demand kept the semi-finished steel market under pressure. Despite a slight reduction in spot offers, market activity remained limited, with only selective bookings concluded after price negotiations at lower bid levels.
Buying interest remained restrained throughout the session as persistent weakness in the finished steel segment continued to curb billet procurement. Most buyers limited purchases to immediate production requirements, while sellers lowered offers selectively to stimulate demand.
According to market participants, the Raipur steel market is currently facing significant pressure on downstream operations. Several rerolling mills have either reduced production or temporarily suspended operations due to severely compressed margins. Weak profitability in finished steel has substantially lowered billet consumption, leaving producers with limited pricing power despite attempts to support the market through lower offers.
Finished steel remains under pressure
In the Raipur market, rebar prices remained unchanged, while wire rod prices declined by INR 200/t d-o-d amid weak enquiries and muted end-user demand. The continued weakness in long steel products reduced raw material requirements for rerollers, reinforcing cautious billet procurement.
Sponge iron eases marginally
Sponge iron prices in the Raipur cluster declined by INR 50/t d-o-d, tracking the softer trend in the steel value chain. Buying activity remained limited as induction furnace operators maintained cautious procurement, while producers adjusted offers marginally to align with weaker market sentiment.
The conversion spread between pellet-based direct reduced iron (PDRI) and billets for standalone induction furnaces in the Raipur cluster was assessed at INR 13,100/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) – Four trades at INR 38,800-38,900/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 38,827/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 38,816/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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