- Sponge iron, billet prices rise w-o-w
- Limited pellet buying in Raipur region
Pellet prices in the Raipur region remained steady as local producers continued to offer at previous levels. Market sentiment was supported by sponge iron (P-DRI) and rising billet prices, ensuring firm offers despite subdued trading activity.
BigMint’s bi-weekly domestic pellet (Fe63%) index remained stable at INR 10,250/t ($120/t) DAP Raipur on 1 April 2025 compared to the previous assessment on 28 March. In this publishing window, deals for around 5,000 t of pellets (Fe63%) were concluded by Raipur-based producers at INR 10,250/t ($120/t) DAP Raipur. Some buyers booked around 10,000 t of raw pellets (Fe62.5%) at INR 9,500/t ($111/t) DAP from Odisha-based suppliers.
Market participants informed that transactions were limited as most buyers had already secured their deals in the preceding days. A trader informed, “The market was relatively quiet as steelmakers had completed their need-based purchases over the past two weeks, leaving little room for new transactions.”
Raipur-based pellet producers kept their offers stable for Fe63% (+/- 0.5%) pellets at INR 10,100-10,200/t ($118-119/t) exw-Raipur. Odisha-based pellet producers offered Fe 62.5/63% grade material in Raipur at INR 9,500-10,100/t ($111-118/t) DAP.
Additionally, many buyers withheld from fresh bookings towards the financial year-end, preferring to assess upcoming market effects. A market participant commented: “Buyers are in a wait-and-watch mode, expecting potential iron ore price revisions by NMDC for April deliveries before making further purchases.”
Offers from Odisha for Raipur delivery remained unchanged, with limited transactions reported from neighbouring regions. However, steelmakers expect market activity to regain momentum in the coming days as buyers resume purchases.
A prominent buyer from the Raipur region said, “The key factor that will influence pellet prices will be NMDC’s iron ore price revision. If sponge iron prices sustain their recent increase, we might see stability or even an upward shift in pellet prices post-NMDC’s announcement.”
Rationale
- PELLEX has been derived using data points, i.e., trades, offers, and bids. To download the detailed methodology, click here.
- Two (2) deals have been reported so far in this publishing window, and two (2) were taken for calculations. The T1 trade category was accorded 50% weightage.
- Eighteen (18) firm offers, bids, and indicative prices were heard. Fourteen (14) were taken for price calculation and given the balance 50% weightage.
Factors impacting pellet prices
- Sponge iron tags edge up w-o-w: P-DRI prices inched up by INR 100/t ($1/t) w-o-w to INR 26,400/t ($308/t) exw-Raipur on 1 April, with tags climbing by INR 200/t ($2.5/t) d-o-d today. Today, sponge iron prices moved upward, as positive sentiments prevailed on increasing inquiries in the market. However, the market was silent in the second half of the trading session and transaction volumes declined.
- Billet prices climb up w-o-w: Billet prices in Raipur increased by INR 600/t ($7/t) w-o-w to INR 42,100/t ($492/t) exw today. Furthermore, d-o-d, prices rose by INR 250/t ($3/t). The index remained range-bound throughout the day, with a slight increase seen towards the end of the session, supported by improved buying in the previous day’s trading. However, buying activity in both the semi-finished and finished steel segments remained limited today.
Outlook
According to BigMint, market participants will remain watchful of the upcoming outcomes, particularly in raw material pricing trends, which will shape the demand and price directions in the near term. Prices will likely remain firm in the near term following current market dynamics.
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