India: PELLEX holds firm despite festive lull but buyers eying price correction

• Sponge and billet prices up sharply w-o-w
• Pellet offers stable amid drop in iron ore prices

Pellet prices in Raipur remained largely firm this week despite sluggish trading activity, as the ongoing festive season and a sharp correction in Odisha iron ore prices kept buyers cautious.

Price movements, trades

PELLEX, BigMint’s bi-weekly domestic pellet (Fe63%) index for Raipur, remained stable at INR 10,300/t ($116/t) DAP on 23 September 2025 compared to the previous assessment on 19 September. Deals for around 17,000 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 ($115-118/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 ($113-117/t) DAP Raipur, but buyers remained cautious and deals were absent.

Market scenario

Market sources indicated that most sellers maintained their offers at similar levels to last week, unwilling to trim prices despite muted demand. A market participant said, “The rise in sponge iron and semi-finished steel prices on w-o-w basis has provided some support to pellet prices. However, buyers are hesitant and waiting for a correction in line with the recent fall in iron ore prices.”

The latest Odisha Mining Corporation (OMC) auction reflected a decline of around INR 350/t m-o-m in fines bids, which has fuelled expectations of a downward adjustment in pellet offers. A Raipur steelmaker said, “Iron ore prices are dropping sharply, so naturally buyers expect pellets to follow the same trend. But sellers are trying to resist cuts, given the support from sponge and semi-finished markets.”

On the demand side, trading activity has been slowed down by the Navratri festival, which has reduced downstream finished steel consumption. A sponge producer informed, “The festival season has made the market dull. Most buyers are holding back, waiting for clarity after the holidays.”

A trader said that need-based purchases will dominate the market for now.

Rationale

• PELLEX has been derived using data points, i.e., trades, offers, and bids. To download the detailed methodology, click here.
• One (1)  deal was reported in this publishing window and was taken for calculation. Thus, the T1 trade category was accorded 50% weightage.
• Eighteen (18) 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 800/t ($9/t) w-o-w to INR 24,800/t ($279/t) exw-Raipur on 23 September while inching up INR 200/t ($2/t)  d-o-d. Sponge iron prices rose by INR 200/t, though buyer caution prevailed as participants closely tracked the sustainability of recent gains.
• Billet prices up w-o-w: Billet prices in Raipur increased by INR 500/t ($6/t) w-o-w to INR 37,000/t ($417/t) exw today. Prices rose by INR 50/t ($0.5/t) d-o-d. Buyers refrained from bulk procurement, opting instead for need-based purchases to cover immediate requirements. Subdued downstream sentiment kept billet price movements largely range-bound, with only minor adjustments seen in today’s trading.

Outlook

Market sentiment in Raipur is stable yet fragile, hinging on whether sellers can continue to resist pressure from buyers eyeing a correction in pellet prices.