India: Billet index falls slightly d-o-d even as downstream buying improves

• Healthy finished steel, sponge iron trade lends support
• Buyers remain cautious, leading to d-o-d price drop

BigMint’s billet index declined by INR 100/t d-o-d to INR 38,200/t exw-Raipur on 10 August 2026, despite improved buying interest across the downstream steel market. Better movement in finished steel, along with relatively healthy activity in sponge iron and pellet-based DRI, provided some support to billet consumption during the session. However, the marginal price correction indicates that overall market sentiment remained cautious.

Finished steel demand improves

In the Raipur market, buying interest in finished steel improved during the session, supporting billet consumption. Better movement in rebar and other finished products encouraged buyers to step up procurement, although demand has yet to strengthen enough to trigger a sustained price recovery. Although rebar prices declined by INR 100/t d-o-d, while wire rod prices stayed stable at INR 42,200/t.

Sponge iron remains supportive

Sponge iron and pellet-based DRI markets witnessed relatively healthy activity, supporting billet production economics in the Raipur cluster. Improved downstream buying also provided some support to raw material movement, although market participants continued to monitor finished steel demand closely.

The conversion spread between pellet-based direct reduced iron (PDRI) and billets for standalone induction furnaces in the Raipur cluster improved to INR 13,200/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 38,100-38,300/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 38,184/t, which was given a 50% weightage in the final price calculation.

Other price indicators – bids/offers/indicatives (T2) – Seven offers were reported in the trading window and considered as T2 inputs. The average price of these seven was INR 38,166/t and given a 50% weightage in the final price calculation.

The final price of billets was INR 38,175/t exw-Raipur, rounded off to INR 38,200/t exw.