- Weak steel demand limits billet buying after price rally
- Sponge iron prices ease as buyers remain cautious
BigMint’s billet index declined by INR 300/t d-o-d to INR 39,500/t exw-Raipur on 20 August 2026, as correction marks a pause after the recent price rally amid weak buying interest and subdued downstream demand put pressure on the semi-finished steel market. Despite a modest reduction in spot offers, market participation remained limited amid softer sentiment.
Buying activity stayed restrained throughout the session, with weakness in the finished steel segment continuing to curb billet procurement. Following the prolonged price rally, market participants adopted a cautious approach and paused fresh purchases to assess the sustainability of current price levels.
Finished steel prices decline
In Raipur, rebar prices decreased by INR 300/t d-o-d, while wire rod prices fell by INR 100/t, amid weak enquiries and subdued end-user demand. The correction in finished steel prices further reduced support for billet procurement.
Sponge iron eases marginally
Sponge iron prices in the Raipur cluster declined by INR 100/t d-o-d, tracking the softer trend across the steel value chain. Buying activity remained muted as induction furnace operators maintained a wait-and-watch approach.
The conversion spread between PDRI and billets for standalone induction furnaces in Raipur narrowed to INR 12,500/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) – One trade at INR 39,500/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 39,500/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 39,545/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 39,522/t exw-Raipur, rounded off to INR 39,500/t exw.
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