- Selling billets directly turns more profitable option
- Finished steel segment shows early signs of revival
BigMint’s daily billet index recorded a d-o-d rise of INR 150/tonne (t), settling at INR 36,550/t exw-Raipur on 16 July 2025, supported by active buying interest and a recovery in demand across semi-finished and finished steel segments.
Semi-finished steel demand witnessed a notable revival, particularly during the latter half of the trading session. Improved sentiment in the sponge iron segment, especially in central India, led to better price realisations for billet producers and helped support rebar demand in neighbouring regions.
The cost of converting billets into finished steel increased due to higher prices of pig iron and scrap amid their tight supply. Consequently, demand for sponge iron, which is available at cheaper rates, increased significantly, and selling billets directly emerged as a more profitable option.
Market snapshot
- Rebar: Prices remained stable d-o-d amid cautious but sustained buying.
- Wire Rod: Prices rose by INR 200/t d-o-d with deals for approximately 1,600 t concluded.
- Sponge Iron: Prices increased by INR 250/t d-o-d, backed by improved buying across key regions.
Participants pointed to a pick-up in spot bookings, with buyers showing increased interest due to competitive offers and growing expectations of a short-term price rebound.
The conversion spread from sponge iron (PDRI) to billets for standalone induction furnaces in the Raipur cluster was assessed at INR 13,050/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) – Four trades at INR 36,500-36,700/t were recorded during the 2:30 pm to 5:30 pm BigMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 36,578/t, which was given a 50% weightage in the final price calculation.
- Other price indicators – bids/offers/indicatives (T2) – Twelve offers were reported in the trading window and considered as T2 inputs. The average price of these twelve was INR 36,566/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 36,572/t exw-Raipur, rounded off to INR 36,550/t exw.
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