India: PELLEX rises by INR 150/t ($2/t) following hike in Raipur’s pellet offers

• Sentiment turns positive as PDRI, billet tags surge
• Supply tightens amid robust bookings, maintenance

Pellet prices in Raipur increased by INR 200/tonne (t) today, with a few deals concluded in the spot market. Local pellet producers raised their offers for raw pellets, supported by an improvement in sponge iron (PDRI) and semi-finished steel prices over the past week.

Price movements, trades

PELLEX, BigMint’s bi-weekly domestic pellet (Fe63%) index for Raipur, increased by INR 150/t to INR 10,300/t ($117/t) DAP on 9 September 2025 compared to the previous assessment on 5 September. Deals for around 27,000 t were recorded in the Raipur market in the last couple of days at both old and fresh offers.

Raipur-based pellet producers raised their offers for Fe 63/63.5% (+/-0.5%) material by INR 200/t ($2/t) to INR 10,200-10,500/t ($116-119/t) exw recently. A few deals were closed at the fresh offers by pellet sellers.

No sales were reported by sellers from Odisha in the Raipur market. Some suppliers offered raw pellets at INR 10,000-10,400/t ($113-118/t) DAP Raipur, but buyers favoured deals from local plants.

Market scenario

Market participants informed BigMint that Raipur’s market witnessed a sharp climb in downstream steel prices yesterday, extending the steady gains observed during the last week. A pellet trader stated, “The sentiment has clearly turned positive after a prolonged weak phase. With sponge iron prices improving, pellet sellers are more confident in raising offers.”

However, the supply situation remained mixed. A few Raipur-based sellers reportedly closed their sales early and refrained from offering material today, citing adequate bookings at earlier levels. One supplier said, “We had sold sufficient quantity when prices were reduced last week, and even now, inquiries are continuing.”

Meanwhile, supply from Odisha sellers to Raipur buyers remained subdued due to ongoing maintenance shutdowns at some Odisha-based pellet plants. This has added to the tightness in local availability.

Buyers, however, kept their purchases limited to immediate needs. A Raipur-based sponge iron producer noted, “The market is improving, but we are cautious. We prefer to buy in small lots rather than build heavy inventory at higher prices in the current market dynamics.”

Rationale

• PELLEX has been derived using data points, i.e., trades, offers, and bids. To download the detailed methodology, click here.
• Three (3) deals were reported in this publishing window, and two (2) were taken for calculation. Thus, the T1 trade category was accorded 50% weightage.
• Sixteen (16) firm offers, bids, and indicative prices were heard. Thirteen (13) were taken for price calculation and given a balance of 50% weightage.

Key market drivers

• Sponge iron tags rise w-o-w: P-DRI prices climbed by INR 1,050/t ($12/t) w-o-w to INR 24,250/t ($275/t) exw-Raipur on 29 August while inching down INR 100/t ($1/t) d-o-d. Despite supportive sentiment, most buyers refrained from bookings at elevated offers, waiting for price clarity before making further purchases.
• Billet prices up w-o-w: Billet prices in Raipur rose by INR 1,050/t ($12/t) w-o-w to INR 37,500/t ($425/t) exw today. Prices decreased by INR 100/t ($1/t) d-o-d. The uptrend in billet prices was largely influenced by improved trade activity and stronger cues from the northern region. However, inquiries and fresh bookings slowed down today, as buyers adopted a cautious approach, anticipating more clarity on finished steel demand before committing to further bookings.

Outlook

According to BigMint, pellet prices in Raipur are expected to remain range-bound through the week, with possible fluctuations next week as demand and supply dynamics evolve.