- Lower offers trigger selective bookings, overall demand remains slow
- Weak finished steel and softer sponge iron prices continue to weigh
BigMint’s billet index declined by INR 200/t day-on-day to INR 38,400/t exw-Raipur on 7 August 2026, as weak buying interest and bearish sentiment across neighbouring markets continued to weigh on the semi-finished steel segment. Although lower billet offers encouraged selective bookings, overall market activity remained subdued due to weak downstream demand.
Spot offers were revised lower during the session to stimulate buying, resulting in a modest improvement in bookings at negotiated price levels. However, procurement remained largely need-based as buyers continued to adopt a cautious approach, awaiting a sustained recovery in finished steel demand before committing to fresh volumes. Persistent weakness in neighbouring markets and continued competitive pricing further restricted the scope for any meaningful recovery in billet prices.
Market participants noted that the prolonged softness in the finished steel segment has significantly reduced billet consumption, compelling producers to adjust offers to remain competitive. Despite some buying interest emerging at lower price levels, overall sentiment remained bearish, with participants closely monitoring downstream demand for clearer market direction.
Finished steel remains under pressure
In the Raipur market, rebar prices declined by INR 300/t d-o-d, while wire rod prices eased by INR 100/t, reflecting weak end-user demand and limited enquiries. The continued slowdown in finished steel procurement remained the primary factor weighing on billet demand.
Sponge iron slips on weak buying
Sponge iron prices in the Raipur cluster declined by INR 100/t d-o-d, as cautious buying and weak billet demand limited spot transactions. Producers lowered offers marginally to align with softer market conditions, although procurement remained restricted to immediate production 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 13,050/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 38,400-38,500/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 38,412/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 38,430/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 38,421/t exw-Raipur, rounded off to INR 38,400/t exw.
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