- Weak finished steel demand weighs on semi-finished steel prices
- Sponge iron prices drop marginally despite tight availability
BigMint’s billet index declined by INR 200/t d-o-d to INR 37,900/t exw-Raipur on 21 July 2026, as subdued finished steel demand continued to weigh on procurement across the semi-finished steel segment. Limited buying interest and expectations of further price corrections kept market activity limited, resulting in another soft trading session.
Trading remained weak throughout the day as buyers adopted a wait-and-watch approach, anticipating additional price adjustments before committing to fresh purchases. Weak downstream order inflows at rerolling mills further reduced billet procurement, with most buyers restricting purchases to immediate production requirements. The cautious sentiment translated into limited spot transactions and continued pressure on billet prices.
On the supply side, producers attempted to maintain prevailing offer levels, supported by selective billet bookings to neighbouring markets and expectations of uptick in raw material costs. However, weaker domestic demand and competitive market conditions prevented any meaningful recovery in spot prices. Overall, trading volumes remained limited as participants continued to monitor downstream steel demand for signs of improvement.
Finished steel remains under pressure
In the Raipur market, rebar prices declined by INR 400/t d-o-d, while wire rod prices fell by INR 100/t, amid limited buying activity and lower enquiries from end-users. The correction in finished steel prices discourage billet procurement, keeping the sentiment in semis cautious.
Sponge iron slips marginally
Sponge iron prices in the Raipur cluster eased by INR 50/t d-o-d. Although demand remained limited, prices were supported by tight raw material availability, particularly raw pellets, which continued to underpin production costs. Producers resisted sharper price reduction, expecting higher input costs could provide support to sponge iron prices despite the current weakness in consumption.
The conversion spread between pellet-based direct reduced iron (PDRI) and billets for standalone induction furnaces in the Raipur cluster was assessed at INR 14,050/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) – Five trade at INR 37,800-38,000/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 37,885/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 37,937/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 37,911/t exw-Raipur, rounded off to INR 37,900/t exw.
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