- Weak finished steel demand continues to limit billet procurement
- Sellers fail to defend higher offers despite rising sponge iron prices
BigMint’s billet index declined by INR 100/t d-o-d to INR 37,800/t exw-Raipur on 22 July 2026, as limited buying interest and weak downstream demand continued to weigh on the semi-finished steel market. Limited procurement by re-rollers and cautious buyer sentiment kept trading activity limited, despite producers facing rising raw material costs.
Market participation remained subdued throughout the session, with buyers adopting a wait-and-watch approach in anticipation of further corrections in billet prices. Weak demand from the finished steel segment continued to discourage fresh procurement, restricting purchases to immediate production requirements. The absence of stronger downstream orders prevented any meaningful recovery in billet demand.
On the supply side, producers attempted to maintain higher offers, citing tighter raw material availability and increasing production costs. However, resistance from buyers and the lack of sustained demand limited sellers’ ability to pass on higher costs, resulting in a marginal correction in the billet index.
Finished steel market remains subdued
The finished steel market in Raipur remained stable but lacked momentum. Rebar prices were unchanged from the previous session, while wire rod prices declined by INR 100/t d-o-d amid continued weakness in end-user demand. The absence of improvement in finished steel offtake continued to limit billet consumption by rerollers, keeping pressure on the semi-finished steel market.
Sponge iron rises on tighter availability
In contrast to billet prices, sponge iron prices in the Raipur cluster increased by INR 150/t d-o-d. The rise was supported by tighter material availability and sufficient bookings by major market participants, allowing producers to raise spot offers. The increase reflects continued concerns over raw material availability, particularly pellets, which have supported sponge iron production costs in recent weeks.
The conversion spread between pellet-based direct reduced iron (PDRI) and billets for standalone induction furnaces in the Raipur cluster remained unchanged at INR 13,800/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) – Four trade at INR 37,800/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 37,800/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 37,812/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 37,806/t exw-Raipur, rounded off to INR 37,800/t exw.
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