- Volatile market sentiment boosts steel demand
- Finished steel prices jump INR 1,000/t in Raipur
BigMint’s billet index recorded a sharp increase of INR 1,300/tonne (t) d-o-d, settling at INR 40,450/t exw-Raipur on 1 January 2026. The rally was driven by improved bookings and stronger demand from neighbouring regional markets, which significantly lifted spot offers.
Market sentiment remained volatile but firmly positive, as a surge in enquiries from nearby regions supported higher prices. The strong rally in finished steel prices, coupled with improved offtake across major regions, encouraged participants to step up bookings in semi-finished steel. Continued strengthening in finished steel prices boosted buyer confidence, resulting in improved forward bookings across varied price levels.
Market participants also highlighted a tight billet supply scenario and sudden spike in demand following the implementation of steel safeguard duties by the Indian government as key factors behind the sharp price escalation.
Key market highlights:
- Finished steel: In Raipur, rebar and wire rod prices surged by INR 1,000/t, supported by improved bookings and stronger regional demand.
- Sponge iron: Prices in Raipur climbed by INR 700/t. Moderate buying activity and improved bookings compared with the previous session further strengthened sentiment.
The PDRI-to-billet conversion spread for the standalone induction furnaces in Raipur was assessed at INR 15,900/t, indicating improving producer margins with a sharp rise in billet prices.
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 39,500-40,600/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 40,540/t, which was given a 50% weightage in the final price calculation.
- Other price indicators – bids/offers/indicatives (T2) – Nine offers were reported in the trading window and considered as T2 inputs. The average price of these nine was INR 40,400/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 40,470/t exw-Raipur, rounded off to INR 40,450/t exw.
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