- Bulk contracts boost trading volumes in key regions
- Imports from the ME weigh on local trade sentiments
The domestic pellet market recorded a drop of 5% m-o-m in trade volumes in April 2025, according to BigMint data. Total volumes stood at 1.355 million tonnes (mnt) against 1.43 mnt in March.
India’s domestic pellet trade witnessed a drop in April, largely due to reduced trading activity in key supply hubs like Bellary, Kandla, and Raipur. These regions saw lower transaction volumes as multiple plants temporarily halted sales, and steelmakers remained largely covered from previous purchases.
Divergent trends
While the western and central zones struggled, eastern regions like Durgapur, Jamshedpur, and Jharsuguda reported increased trade volumes. Demand from regional steel units and secondary producers drove activity, balancing out some of the deficits seen in other parts of the country.
Imports impact domestic buying
Adding to the slowdown in domestic trade was the arrival of competitively priced imported pellet cargoes from the Middle East. These shipments offered attractive deals to Indian buyers, causing a temporary shift in procurement strategies and dampening local transactions. Additionally, many steelmakers had already secured their pellet requirements in March on a need-only basis, further reducing the urgency for fresh spot deals in April.
Sales closure by key producers
Some major producers, including Jindal Saw Bhilwara, Goa, and a few prominent sellers in Bellary and Raipur, kept their sales closed throughout most of April. This further contributed to the muted market activity in these hubs.
Bulk contracts offer support
Despite the regional slowdowns, bulk contracts executed in Odisha and Vizag by key steelmakers helped support overall trade volumes. These contracts offered some cushion to the market and prevented a steeper fall in total traded quantities.
Factors driving pellet trades
- Bids stable in OMC auction: In OMC’s auction for 1.535 million tonnes (mnt) of iron ore fines (Fe 51-65%) on 19 April in which 1.149 mnt (75% of the offered quantity) were booked at INR 4,150-5,550/t ($49-66/t) ex-mines. Bids (weighted average) remained stable m-o-m.
- Pellet exports decline m-o-m: BigMint’s India pellet (Fe 63%, 3% Al) export index (FOB east coast) declined by $3/t m-o-m to $93/t in April. Spot pellet export deals were largely absent in the sea market, as a result, sellers are seeking domestic sales as an export alternative.
M-o-m pellet trade comparison
PELLEX, indices rise m-o-m
BigMint’s monthly average domestic pellet index, PELLEX, increased by INR 200/t m-o-m in April to INR 10,150/t DAP Raipur. Pellet prices received support from the rise in sponge iron, PDRI, and billet prices in Raipur along with the uptick in iron ore prices in Odisha.
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