- Improved steel demand strengthens spot offers
- Sponge iron prices spike on higher coal costs
BigMint’s billet index surged by INR 1,300/t d-o-d to a two-year high of INR 45,200/t exw-Raipur on 28 September 2026, supported by improved bookings from local and nearby markets. Positive sentiment, higher enquiries and modestly improved finished steel demand strengthened spot offers. The index has reached its highest level in over two years, last seen in May 2024.
Market activity remained volatile, with positive price cues from neighbouring markets supporting higher offers and improving buying activity. Market participants also highlighted that the recent non-coking coal auction concluded at a premium, increasing sponge iron production costs and adding pressure on billet producers’ costs.
Finished steel prices increase
Rebar offers in Raipur increased by INR 1,400/t d-o-d, while wire rod prices rose by INR 600/t. Improved bookings during the trading session and firmer finished steel demand supported billet procurement from end users.
Sponge iron prices surge
Sponge iron prices in Raipur increased sharply by INR 1,250/t d-o-d. Higher production costs and limited raw material availability pushed sellers to raise spot offers despite softer spot demand.
The conversion spread between pellet-based direct reduced iron (PDRI) and billet for standalone induction furnaces in the Raipur cluster was assessed at INR 15,950/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) – Eight trades were recorded at INR 45,000-45,300/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 45,185/t, which was given a 50% weightage in the final price calculation.
- Other price indicators – bids/offers/indicatives (T2) – Fourteen offers were reported in the trading window and considered as T2 inputs. The average price of these fourteen was INR 45,194/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 45,189/t exw-Raipur, rounded off to INR 45,200/t exw.
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