- Weak downstream demand weighs on billet procurement after recent rally
- Sponge iron prices remain stable as buyers adopt a cautious approach
BigMint’s billet index declined by INR 300/t d-o-d to INR 39,600/t exw-Raipur on 26 August 2026, marking a correction after the recent price rally. The decline was primarily driven by weak buying interest and subdued downstream demand, which weighed on market sentiment and limited billet procurement.
Market activity remained muted throughout the session, with buyers adopting a wait-and-watch approach after the recent price gains. Following the prolonged rally, participants remained cautious about making fresh purchases and preferred to assess the sustainability of current price levels. Although spot offers softened marginally, the correction in finished steel prices further reduced buying support for billets.
Finished steel prices decline
Finished steel prices in Raipur also witnessed a correction, with rebar and wire rod prices declining by INR 300/t d-o-d, respectively. Weak enquiries and subdued end-user demand continued to weigh on the finished steel segment. The decline in finished steel prices reduced mills’ ability to absorb higher billet costs, thereby putting additional pressure on billet prices.
Sponge iron prices remain stable
Sponge iron prices in the Raipur cluster remained stable at INR 28,500/t d-o-d. Market activity, however, remained limited as buyers had already covered adequate quantities in the previous few days. Despite higher coal prices and elevated production costs, fresh sponge iron buying remained subdued, as participants continued to exercise caution amid weak steel demand.
Conversion spread narrows
The PDRI-to-billet conversion spread for standalone induction furnaces in Raipur narrowed to INR 12,100/t, reflecting pressure on billet economics amid the correction in billet prices while sponge iron prices remained stable.
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) – Two trades were 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 40,452/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 sixteen was INR 40,676/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 40,564/t exw-Raipur, rounded off to INR 40,600/t exw.
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