- Rising sponge iron costs, tighter material supply drive sharp hike
- Semis buying remains cautious as downstream demand struggles
BigMint’s billet index increased sharply by INR 1,050/t d-o-d to INR 40,550/t exw-Raipur on 21 August 2026, marking a significant upward movement in the semi-finished steel market. The rally was primarily due stronger price cues from neighbouring markets, alongside rising raw material costs and higher production expenses.
Despite the sharp increase in spot offers, buying interest remained restricted across both semi-finished and finished steel segments. Buyers adopted a wait-and-watch approach as the rapid increase in billet and raw material prices raised concerns over the sustainability of current price levels resulting cautious approach despite volatility.
Several participants had already secured sufficient material during earlier sessions at lower prices, further limiting fresh procurement. Market participants attributed the latest price escalation largely to rising input costs and tighter material availability rather than a broad-based improvement in end-user demand.
Finished steel prices surge
In Raipur, rebar prices increased by INR 900/t d-o-d, while wire rod prices rose by INR 700/t. Despite the sharp price increases, buying interest remained muted as downstream consumers assessed the impact of higher finished steel prices on demand.
Sponge iron gains sharply
Sponge iron prices in Raipur increased by INR 750/t d-o-d, supported by modest buying activity and higher spot offers amid volatile market conditions. The rise in sponge iron costs added further pressure to billet production economics.
The conversion spread between sponge iron (PDRI) and billets for standalone induction furnaces in Raipur narrowed to INR 12,800/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) – Three trades at INR 40,500-40,600/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 40,585/t, which was given a 50% weightage in the final price calculation.
- Other price indicators – bids/offers/indicatives (T2) – Fifteen offers were reported in the trading window and considered as T2 inputs. The average price of these fifteen was INR 40,485/t and given a 50% weightage in the final price calculation.
The final price of billets was INR 40,535/t exw-Raipur, rounded off to INR 40,550/t exw.
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