- Moderate buying interest in Raipur
- DRI, semis prices drop, pellet stable
Pellet prices in Raipur remained firm this week despite a drop of INR 350-600/t ($4-7/t) in sponge iron (PDRI) and billet prices. Local pellet suppliers maintained stable offers, showing resilience in the face of price correction. Trading activity was moderate, with buyers opting for need-based procurement.
BigMint’s bi-weekly domestic pellet (Fe63%) index remained stable at INR 10,250/t ($119/t) DAP Raipur on 11 April 2025 compared to the previous assessment on 8 April. In this publishing window, deals for around 14,000 t of pellets (Fe63%) were concluded by Raipur-based sellers at INR 10,350-10,450/t ($119-120/t) DAP Raipur, while Odisha-based sellers sold around 10,000 t pellets (Fe63%) at INR 9,800-9,900/t ($114-115/t) DAP to Raipur buyers.
Interestingly, a few buyers in Raipur sourced pellets from Odisha-based sellers, lured by competitive prices.
A buyer said: “Odisha sellers were offering at slightly lower rates, and so buyers procured to meet immediate needs.”
Meanwhile, some Raipur-based pellet suppliers chose to keep sales closed, citing sufficient deals earlier in the week. A seller informed, “We saw decent sales volumes earlier, so there’s no pressure to sell at lower prices now.”
Raipur-based pellet producers kept their offers stable for Fe63% (+/- 0.5%) material at INR 10,200-10,300/t ($118-119/t) exw-Raipur. However, few significant sellers from Raipur were kept the sales closed. Odisha-based pellet producers offered Fe 62.5/63% grade in Raipur at INR 9,500-10,100/t ($110-117/t) DAP.
Several buyers are reportedly waiting for the upcoming OMC iron ore auction and a possible revision in NMDC’s iron ore prices, which may give more clarity on future pellet trends. Sources stated that NMDC is set to revise iron ore prices soon, and that could set the tone for pellet offers next week.
Market sources suggest that Raipur pellet prices may stay rangebound in the short term, but any correction in iron ore prices could soon reflect in pellet offers.
Rationale
- PELLEX has been derived using data points, ie, trades, offers, and bids. To download the detailed methodology, click here.
- Two (2) deals have been reported so far in this publishing window, and taken for calculations. The T1 trade category was accorded 50% weightage.
- Seventeen (17) 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 fall w-o-w: P-DRI prices dropped by INR 350/t ($4/t) w-o-w to INR 26,250/t ($305/t) exw-Raipur on 11 April, while remained stable d-o-d today. Deals remained under pressure today with pockets of trades concluded. However, market sentiments remained largely range-bound, resulting in only a modest uptick in semi-finished steel demand d-o-d.
- Billet prices down w-o-w: Billet prices in Raipur decreased by INR 600/t ($7/t) w-o-w to INR 41,850/t ($486/t) exw today. Furthermore, d-o-d, prices edged up by INR 50/t ($0.5/t). The index witnessed a marginal increase today, as weakening buying interest and subdued inquiries kept market sentiments on the lower side. Market participants adopted a wait-and-watch approach, with higher spot offers failing to draw significant buyer interest. However, limited buying activity was observed in the finished steel segment through the day.
Outlook
According to BigMint analysis, Raipur pellet prices will remain firm in the near term while trading activity from Odisha may increase amid competitive prices.
Leave a Reply