- Buyers in semis remained cautious over elevated spot offers
- Finished steel and sponge iron surges on modest buying support
BigMint’s billet index increased by INR 200/t d-o-d to INR 39,400/t exw-Raipur on 18 August 2026, extending its recent upward trend despite restricted buying activity. The increase was primarily supported by elevated seller offers, tighter availability of quality raw materials and improving market sentiment, while buyers remained cautious at higher price levels.
Market participation remained selective, as several participants had already covered their immediate requirements during earlier sessions at comparatively favourable prices. The latest price increase prompted buyers to pause fresh bookings and assess the sustainability of higher levels, particularly in the absence of a broad-based recovery in finished steel demand.
Sellers continued to raise spot offers following the previous session’s improvement. However, weak buying sentiment across some key consuming regions limited the upside. Market participants indicated that supply-side constraints and higher raw material costs are currently supporting prices, but sustained gains will require stronger downstream steel demand.
Finished steel prices surge
In Raipur, rebar prices increased by INR 1,000/t d-o-d, while wire rod prices rose by INR 800/t, supported by an improvement in buying activity and stronger sentiment across the domestic market. The sharp rise in finished steel prices provides some additional support to billet replacement economics, although actual downstream offtake remains a key factor to monitor.
Sponge iron gains on raw material tightness
Sponge iron prices in Raipur increased by INR 700/t d-o-d, as producers maintained elevated offers amid tight availability of quality raw materials and rising production costs. Moderate bookings at higher price levels allowed producers to push spot prices upward.
The conversion spread between PDRI and billets for standalone induction furnaces in Raipur narrowed further to INR 12,400/t, indicatine the faster increase in sponge iron compared with billet prices.
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 39,300-39,450/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 39,391/t, which was given a 50% weightage in the final price calculation.
- Other price indicators – bids/offers/indicatives (T2) – Seventeen offers were reported in the trading window and considered as T2 inputs. The average price of these seventeen was INR 38,446/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 39,419/t exw-Raipur, rounded off to INR 39,400/t exw.
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