- Sponge and billet prices remain firm w-o-w
- Prices are expect to get correction next week
Pellet prices in Raipur remained largely stable this week with moderate trading activity recorded in the spot market. Market participants noted that buyers were cautious and refrained from aggressive procurement due to the ongoing Odisha Mining Corporation (OMC) auction, which is expected to set the tone for the market in the coming weeks.
Price movements, trades
PELLEX, BigMint’s bi-weekly domestic pellet (Fe63%) index for Raipur, remained stable at INR 10,300/t ($117/t) DAP on 19 September 2025 compared to the previous assessment on 16 September. Deals for around 30,000 t were recorded in the Raipur market in the last couple of days, concluded by local pellet suppliers.
Raipur-based pellet producers kept their offers for Fe 63/63.5% (+/-0.5%) material stable at INR 10,200-10,500/t ($116-119/t) exw recently. Meanwhile, a few plants hiked their offers with no deals.
Some Odisha-based suppliers offered pellets at INR 10,000-10,400/t ($114-118/t) DAP Raipur, but buyers favoured deals from local plants.
Market scenario
A Raipur-based trader said, “”The sentiment is steady, but most buyers are holding back purchases until they get price clarity from the OMC auction. Demand is there, but nobody wants to take a risk ahead of fresh allocations.”
Meanwhile, sponge iron, pellet, and semi-finished steel prices remained firm on a week-on-week basis, providing some support to overall market sentiment. However, buying interest was muted.
Suppliers in Raipur kept their offers stable, though some material shortage was reported. A producer from the region remarked, “We are witnessing limited availability as a few plants have either hiked their offers or reduced their sales. This has added some tightness to supply in the local market.”
Looking ahead, market participants believe pellet price direction will depend on the outcome of the OMC auction. A buyer added, “Next week will be crucial. The auction results will provide a clearer picture of supply-demand balance.”
NMDC Chhattisgarh auctioned 70,200-t iron ore from Bacheli on 18 September. The entire 17,200-t DR CLO (Fe 67%) fetched 13% premium (base INR 6,910/t), while 4,000-t sized lumps (10-20 mm, Fe 65.5%) securing 20% premium (base INR 6,300/t). Meanwhile, 8,000-t fines (Fe 64%) were sold at the base price of INR 5,290/t, and 6,000-t ROM remained unsold (base INR 6,050/t). Prices were on FOR basis, inclusive of royalty, DMF, and NMEDT.
Rationale
- PELLEX has been derived using data points, i.e., trades, offers, and bids. To download the detailed methodology, click here.
- Two (2) deals were reported in this publishing window and were taken for calculation. Thus, the T1 trade category was accorded 50% weightage.
- Seventeen (17) firm offers, bids, and indicative prices were heard. Ten (10) 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 rose by INR 600/t ($7/t) w-o-w to INR 24,500/t ($278/t) exw-Raipur on 16 September while inching up INR 100/t ($1/t) d-o-d. overall demand stayed restricted due to weak downstream momentum and cautious buyer participation.
- Billet prices up w-o-w: Billet prices in Raipur inched up by INR 100/t ($1/t) w-o-w to INR 36,950/t ($419/t) exw today. Prices rose by INR 150/t ($2/t) d-o-d. Buyers largely refrained from fresh bookings, having secured adequate volumes in earlier sessions at lower levels. Moreover, the upcoming festive slowdown further weighed on participation, restricting trading momentum.
Outlook
The pellet market is expected to take fresh cues from the OMC auction results are dynamics are expected to shape up accordingly.
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