- Uptick in finished steel, sponge iron prices support increase in billet index
- Buyers cautious about sustainability of rally amid uncertain finished steel outlook
BigMint’s billet index increased sharply by INR 550/t d-o-d to INR 40,950/t exw-Raipur on 24 August 2026, supported by persistent increases in raw material costs and tighter spot availability. Positive price cues from northern India further strengthened market sentiment and contributed to volatility in the Raipur market.
Trading remained active across varied price levels, with a steady improvement in semi-finished steel demand supporting moderate billet bookings. However, the recovery in finished steel demand remained limited, prompting buyers to remain cautious about the sustainability of the current price rally.
Finished steel prices strengthen
In Raipur, rebar prices increased by INR 300/t, while wire rod prices rose by INR 400/t. Lower-to-moderate buying activity was reported as buyers continued to assess higher offer levels and its sustainability. The improvement in finished steel prices provided additional support to billet prices, although the relatively limited recovery in downstream demand remains a constraint.
Sponge iron surges on supply tightness
Sponge iron prices in Raipur increased sharply by INR 600/t d-o-d, supported by improved buying activity across varied price levels and tighter spot availability. Higher raw material costs further strengthened producer offers.
The conversion spread between PDRI and billets for standalone induction furnaces in Raipur narrowed to INR 12,450/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 40,800-41,000/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 40,902/t, which was given a 50% weightage in the final price calculation.
- Other price indicators – bids/offers/indicatives (T2) – Seventeen offers were reported in the trading window and considered as T2 inputs. The average price of these seventeen was INR 41,007/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 40,954/t exw-Raipur, rounded off to INR 40,950/t exw.
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