- Lower billet and sponge iron offers trigger modest buying
- Finished steel prices declines further on weak cues
BigMint’s billet index declined by INR 300/t d-o-d to INR 38,000/t exw-Raipur on 7 July 2026, as producers lowered spot offers to stimulate buying amid subdued market sentiment. Although the price correction resulted in a modest improvement in billet bookings, overall trading activity remained constrained by weak downstream demand and cautious procurement by buyers.
Lower billet offers encouraged selective purchases during the session, with some buyers taking advantage of the correction to replenish immediate requirements. However, procurement remained measured as weak finished steel demand over the past few days prompted market participants to adopt a wait-and-watch approach. Buyers largely refrained from bulk bookings, preferring to monitor downstream offtake before committing to fresh semi-finished steel purchase.
Sentiment also remained under pressure due to weaker cues from neighbouring markets and competitively priced material from nearby producers. These factors continued to influence local pricing, compelling billet producers to adjust offers to remain competitive in the spot market.
Finished steel prices weaken further
The finished steel market remained sluggish in Raipur, with both rebar and wire rod prices declining by INR 300/t d-o-d. Tepid demand from distributors and end-users continued to weigh on the long steel segment, limiting procurement by rerollers and reducing support for billet demand.
Sponge iron prices correct to attract buyers
Sponge iron prices in the Raipur cluster also declined by INR 300/t d-o-d as producers reduced offers to attract buying interest. The lower prices resulted in an improvement in bookings compared with recent sessions.
The conversion spread between pellet-based direct reduced iron (PDRI) and billets for standalone induction furnaces in the Raipur cluster was assessed at INR 14,900/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) – Three trades at INR 38,000/t 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 38,000/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 38,035/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 38,017/t exw-Raipur, rounded off to INR 38,000/t exw.
Click here for detailed methodology
Leave a Reply