- Higher sponge iron costs, tighter raw material supply drive sharp hike
- Semis buying remains cautious as downstream demand struggles
BigMint’s billet index increased sharply by INR 1,100/t d-o-d to INR 41,700/t exw-Raipur on 26 August 2026, supported by stronger price cues from neighbouring markets, rising raw material costs and higher production expenses. However, buying interest remained limited across semi-finished and finished steel segments as buyers remained cautious after the sharp price increase.
Market participants said the latest price rise was driven mainly by higher input costs and tighter material availability rather than a broad-based improvement in end-user demand. Several buyers had already secured material at lower levels in previous sessions, limiting fresh procurement and keeping trading activity subdued.
Finished steel prices rise
In Raipur, rebar prices increased by INR 1,200/t d-o-d, while wire rod prices also rose by INR 1,200/t. Despite the sharp price increases, downstream buying remained muted as consumers assessed the impact of higher finished steel prices on demand.
Sponge iron costs increase
Sponge iron prices in Raipur increased by INR 500/t d-o-d, supported by higher iron ore pellet and non-coking coal costs. Trading activity remained limited amid significant price volatility and uncertainty over market direction. The increase in sponge iron prices added further pressure to billet production economics.
The conversion spread between sponge iron (P-DRI) and billets for standalone induction furnaces in Raipur narrowed to INR 12,700/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 were recorded at INR 41,600-41,700/t 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 41,700/t, which was given a 50% weightage in the final price calculation.
• Other price indicators – bids/offers/indicatives (T2) – Eighteen offers were reported in the trading window and considered as T2 inputs. The average price of these eighteen was INR 41,621/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 41,660/t exw-Raipur, rounded off to INR 41,700/t exw.
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