- Muted buying and weak downstream demand keep
- Sponge iron prices corrected on limited enquiries
BigMint’s billet index declined by INR 200/t d-o-d to INR 38,600/t exw-Raipur on 6 August 2026, as subdued buying interest and persistent weakness in downstr
eam steel demand continued to weigh on the semi-finished steel market. Despite further price corrections, fresh enquiries remained limited throughout the session.
The market remained under pressure as buyers stayed on the sidelines after securing sufficient material during the previous few trading sessions. Procurement was primarily need-based, with most participants preferring to wait for clearer market direction from the finished steel segment before committing to additional purchases. The absence of meaningful downstream support restricted spot bookings, while lower bids kept negotiations in favour of buyers.
Market participants also cited weak finished steel demand and cautious sentiment across neighbouring markets as key factors limiting billet consumption. Although sellers adjusted offers to stimulate buying, the corrections failed to generate a significant improvement in trading activity, reflecting continued uncertainty in the domestic steel market.
Finished steel remains weak
In the Raipur market, rebar prices declined by INR 100/t d-o-d, while wire rod prices fell by INR 200/t, as weak end-user demand and lower enquiries continued to pressure the long steel segment.
Sponge iron corrects on competitive offers
Sponge iron prices in the Raipur cluster declined by INR 250/t d-o-d, as lower buyer bids and competitive material from neighbouring regions exerted additional pressure on spot offers.
The conversion spread between pellet-based direct reduced iron (PDRI) and billets for standalone induction furnaces in the Raipur cluster was assessed at INR 13,150/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 38,600-38,800/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 38,600/t, which was given a 50% weightage in the final price calculation.
- Other price indicators – bids/offers/indicatives (T2) – Thirteen offers were reported in the trading window and considered as T2 inputs. The average price of these sixteen was INR 38,637/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 38,618/t exw-Raipur, rounded off to INR 38,600/t exw.
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