India: PELLEX remains firm amid cautious buying

• Sponge iron price rise by INR 200/t w-o-w
• Markets subdued amid year-end closures

Pellet prices in Raipur remained stable as the market resorted to need-based buying amid financial year-end closures, limiting market activity. Inquiry volumes were low, prompting sellers to keep their offers unchanged. The cautious stance of buyers contributed to the price stability. Market participation remained subdued as stakeholders focused on financial adjustments. As a result, overall trading sentiment remained restrained.

BigMint’s bi-weekly domestic pellet (Fe63%) index remained unchanged at INR 9,850/t ($113/t) DAP Raipur on 18 March 2025 compared to the previous assessment on 11 March. In this publishing window, around 30,000 t of pellets (Fe62/63%) deals were concluded by Raipur based steelmaker at INR 9,750-9,950/t DAP Raipur. A deal of around 15,000 t of higher grade pellets (Fe65%) was also concluded in the Raipur region.

Pellet offers in Raipur for Fe63% (+/- 0.5%) material remained stable at INR 9,800-9,900/t ($112-114/t) exw over the past couple of days.

Dispatches from Odisha remained subdued as market participants prioritized local trading over regional transactions. Limited buying interest led to restrained outbound movement.

Rationale

• PELLEX has been derived using data points, i.e., trades, offers, and bids. To download the detailed methodology, click here.
• Three (3) deal has been reported so far in this publishing window and was taken for calculations. The T1 trade category was accorded 50% weightage.
• Eight (8) firm offers, bids, and indicative prices were heard. Seven(7) were taken for price calculation and given the balance 50% weightage.

Factors impacting pellet prices

• Sponge iron tags rise w-o-w: P-DRI prices rose by INR 200/t ($2/t) w-o-w to INR 25,400/t ($293/t) exw-Raipur on 18 March. Meanwhile, prices increased by INR 250/t ($3/t) d-o-d today. Improved trading activity contributed to the price rise.
• Billet prices increase w-o-w: Billet prices in Raipur rose by INR 350/t ($4/t) w-o-w to INR 40,350/t ($466/t) exw today. However, d-o-d, prices increased by INR 200/t ($2/t).