India: PELLEX inches up amid moderate trading activity

• Raipur-based suppliers keep offers stable
• DRI prices stable, billet rises w-o-w

Pellet prices in Raipur have remained firm over the last few days, supported by moderate buying activity and seasonal demand, even as monsoon continues to impact market activity. Market participants highlighted that sponge iron prices showed positive signals yesterday and have remained rangebound throughout the past week, which helped revive raw material buying interest.

Price movements, trades

PELLEX, BigMint’s bi-weekly domestic pellet (Fe63%) index for Raipur, inched up by INR 50/t ($0.5/t) to INR 10,100/t ($115/t) DAP on 5 August 2025 compared to the previous assessment on 1 August.

Raipur-based producers maintained their offers for Fe 63% (+/-0.5%) at stable levels of INR 9,900-10,000/t ($113-114/t) exw. Deals for around 70,000 t were concluded over the last couple of days by local pellet suppliers, largely driven by improved sentiment in the sponge iron market.

Pellet (Fe 62.5-63%) offers from Odisha for Raipur were heard at INR 9,700-10,200/t ($111-116/t) DAP.

Market scenario

A Raipur-based sponge iron producer stated, “The DRI market has been moving in a narrow range for the past few days. We are purchasing pellets only on a need basis, as downstream price direction remains uncertain.”

In contrast, the semi-finished steel market has shown an uptrend over the last week, with daily price fluctuations adding to the volatility. This price movement has added some optimism in raw material buying but hasn’t yet translated into aggressive pellet procurement.

Several local pellet suppliers were seen pulling back their offers after successful sales in the past couple of days, and many are not accepting new orders at the moment. This has further tightened the availability in the region.

A local supplier commented, “We’ve completed our immediate sales and are currently not accepting new orders, given the uncertain supply situation amid monsoon.”

Deals from Odisha remained largely absent, with buyers preferring to rely on local Raipur-based suppliers due to better logistical convenience and timely delivery.

Rationale

• PELLEX has been derived using data points, i.e., trades, offers, and bids. To download the detailed methodology, click here.
• Five (5) deals were reported in this publishing window and four (4) were taken for calculation. Thus, the T1 trade category was accorded 50% weightage.
• Thirteen (13) firm offers, bids, and indicative prices were heard. Eleven (11) were taken for price calculation and given a balance of 50% weightage.

Key market drivers

• Sponge iron tags stable w-o-w: P-DRI prices remained largely stable w-o-w to INR 24,950/t ($284/t) exw-Raipur on 5 August. Meanwhile, prices inched down by INR 100/t ($1/t) d-o-d today. Buyer participation was minimal, as most resisted current offers from sellers. Only small, need-based trades were concluded, leaving the market appearing nearly inactive. Sentiment remained subdued, with many participants anticipating further price declines in the near term.
• Billet prices rise w-o-w: Billet prices in Raipur increased by INR 500/t ($6/t) w-o-w to INR 38,000/t ($433/t) exw today while falling INR 100/t ($1/t) d-o-d. Market sentiment remained muted, with subdued buying interest and a cautious outlook prevailing across key trading hubs.

Outlook

Pellet prices are expected to remain volatile in the near term, with buying continuing on a need-basis until clear pricing direction emerges.