- Raw material cost pressure fuels sharp upward correction
- Finished steel rally drives sentiment across segments
BigMint’s billet index surged by INR 1,550/t day-on-day to INR 42,350/t exw-Raipur on 30 March 2026, supported by volatility, improved bookings in previous trading sessions, and firm demand from neighbouring regions.
Market sentiment remained highly volatile but positive, as strong bookings over the weekend and improved offtake in key regions lifted spot offers. Demand from Maharashtra, Gujarat, and Telangana provided additional support, with buyers sourcing billets from central India amid constrained scrap availability and relatively lower freight costs.
However, buying activity during the day remained limited, as the sharp spike in offers pushed buyers to the sidelines. Participants noted that while demand momentum improved earlier, the sudden rise in prices led to cautious procurement behaviour.
Market participants highlighted that rising coal and scrap prices, along with increased freight and handling charges, significantly elevated production costs, compelling mills to revise offers upward. Tight raw material availability and geopolitics-linked cost pressures further reinforced the bullish sentiment.
Market comments from participants
- Rising raw material costs, particularly coal and scrap, have significantly increased production costs, compelling mills to raise billet offers.
- A strong demand uptick from Maharashtra, Gujarat, and Telangana further supported prices, as constrained scrap availability in these regions prompted buyers to procure billets from central India, aided by relatively lower freight costs.
- Margin pressure in finished steel, coupled with elevated input costs, led sellers to increase gauge parity by around INR 500/t in key regions such as Raipur, Raigarh, and Durgapur.
Finished steel rallies sharply
In Raipur, finished steel prices witnessed a strong upswing. Rebar prices surged by INR 2,500/t, while wire rod increased by INR 1,900/t, supported by improved buying interest and active participation across major markets.
Sponge iron strengthens
Sponge iron prices in Raipur rose by INR 1,300/t d-o-d, driven by higher input costs and prior booking momentum. However, buying interest remained limited at elevated levels.
The conversion spread from pellet-based sponge iron (PDRI) to billets for standalone induction furnaces in Raipur was assessed at around INR 15,450/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) – Five trades at INR 42,100-42,500/t were 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 42,339/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 42,387/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 42,363/t exw-Raipur, rounded off to INR 42,350/t exw.
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