- Pellet offers stable in Raipur amid rising bids in OMC auction
- Sponge prices fall w-o-w, market remains tight
Pellet prices in the Raipur region remained largely stable this week, with moderate trades concluded on a requirement basis by local steelmakers. Market participants indicated that local pellet suppliers kept their offers unchanged, while a few inquiries were heard for fresh bookings. Additionally, some Odisha-based suppliers managed to close deals in the Raipur market, keeping overall sentiment firm.
Price movements, trades
PELLEX, BigMint’s bi-weekly domestic pellet (Fe63%) index for Raipur, inched down by INR 50/t ($0.5/t) to INR 10,350/t ($118/t) DAP on 22 August 2025 compared to the previous assessment on 19 August.
Raipur-based producers kept their offers for Fe 63% (+/-0.5%) to INR 10,100-10,300/t ($116-118/t) exw. Deals for around 33,000 t were concluded over the last couple of days by local pellet suppliers. Around 10,000 t pellet deals were concluded by Odisha-based suppliers in Raipur at INR 9,800/t ($112/t) DAP
Market scenario
The pellet price stability was supported by the recent hike in OMC’s iron ore fines auction bids, which rose by INR 300/t ($4/t) against July. A trader commented, “The OMC auction outcome has set a higher floor for raw material costs, which is indirectly supporting pellet prices even as demand remains cautious. Meanwhile, sponge PDRI prices dropped this week by INR 300-400/t ($3.5-4.5/t).”
Despite steady offers, buyers continued to procure only on a need basis, avoiding bulk purchases. A steelmaker noted, “We are buying just enough to meet current production needs. There is no rush in the market as we are cautious of further price corrections.”
Another buyer said, “We are only procuring some pocket of trades and avoiding the bulk deals due to the volatility in the market. The pellet offers are currently higher for us to purchase material.”
Suppliers, meanwhile, were seen dispatching previously booked cargoes, maintaining liquidity in the market. A pellet supplier added, “Raw material shortage and higher costs are a concern, and with monsoon disruptions, pellet remains more favourable compared to lumps. But the overall demand outlook is still subdued.”
As per sources, market sentiments are dull due to the pressure from the sponge and finished steel market, further weighing on the pellet dynamics.
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 Two (2) were taken for calculation. Thus, the T1 trade category was accorded 50% weightage.
- Eleven (11) firm offers, bids, and indicative prices were heard. All were taken for price calculation and given a balance of 50% weightage.
Key market drivers
- Sponge iron tags fall w-o-w: P-DRI prices edged down by INR 350/t ($4/t) w-o-w to INR 23,800/t ($272/t) exw-Raipur on 22 August, while falling by INR 200/t ($2.5/t) d-o-d. The semi-finished and finished steel segments echoed this sentiment, continuing on a sluggish path and reinforcing the overall softness in the market. Procurement was need-based, with re-rollers and secondary producers opting for selective bookings, while finished steel demand remained under pressure.
- Billet prices stable w-o-w: Billet prices in Raipur remain largely stable w-o-w and d-o-d at INR 37,450/t ($428/t) exw today. Trading activity remained muted, with limited inquiries as most buyers adopted a wait-and-watch stance, seeking clarity on market sustainability. The broader pessimism-driven by subdued finished steel demand-kept billet offers under persistent pressure.
Outlook
The Raipur pellet market is likely to trade in a narrow range, albeit with possible volatility in the near term.
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