- Rise in finished steel prices supports higher billet prices
- Buyers turn cautious after recent bookings
BigMint’s billet index extended its upward trend, increasing by INR 250/t d-o-d to INR 38,500/t exw-Raipur on 24 July 2026, supported by higher raw material costs and firm producer offers. Despite the price increase, overall trading activity remained subdued as buyers adopted a cautious approach after covering most of their immediate requirements during previous sessions.
Market participation was limited throughout the day, with many consumers opting to defer fresh bookings in anticipation of clearer signals from the finished steel market. The recent recovery in billet prices prompted buyers to assess the sustainability of higher offers before committing to additional purchases, resulting in selective trade activity across the semi-finished steel segment.
Producers attempted to lift spot offers following the previous session’s improvement in buying interest, supported by rising sponge iron prices and tighter raw material availability. However, the absence of a broad-based recovery in finished steel demand across key consuming regions restricted further upside in billet prices. Market participants indicated that while supply-side factors are currently supporting the market, sustained price gains will depend on stronger downstream steel consumption over the coming weeks.
Finished steel posts modest gains
The finished steel market in Raipur registered further price improvements. Rebar prices increased by INR 200/t d-o-d, while wire rod prices rose by INR 300/t, supported by the recent recovery in market sentiment. However, trading activity remained limited, as many buyers had already secured sufficient material to meet their near-term production requirements, limiting fresh procurement.
Sponge iron rallies on supply tightness
Sponge iron prices in the Raipur cluster surged by INR 550/t d-o-d, supported by tighter material availability and higher raw material costs. A modest improvement in buying activity, coupled with constrained supply, enabled producers to raise spot offers despite buyers remaining cautious at elevated price levels.
The conversion spread between pellet-based direct reduced iron (PDRI) and billets for standalone induction furnaces in the Raipur cluster narrowed further to INR 13,500/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) – Two trades at INR 38,500/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 38,500/t, which was given a 50% weightage in the final price calculation.
- Other price indicators – bids/offers/indicatives (T2) – Sixteen offers were reported in the trading window and considered as T2 inputs. The average price of these sixteen was INR 38,520/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 38,510/t exw-Raipur, rounded off to INR 38,500/t exw.
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