India: PELLEX stays unchanged for 1 month, trades subdued

• Buyers cautious about bulk trades at current offers
• Sponge iron, billet prices fall INR 500-600/t w-o-w

Pellet prices in Raipur continued to remain stable this week, with market activity recorded at limited levels. Market participants reported that trading remained largely subdued, as most buyers preferred to procure material only on the basis of immediate requirements. Despite limited demand suppliers have maintained their offers unchanged, supported by reduced availability from select producers.

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 10 October 2025 compared to the previous assessment on 7 October. PELLEX remained unchanged since last month and is maintaining similar levels. Around 5,000 t of pellet deals were concluded by the buyers in the last couple of days.

Raipur-based pellet producers kept their offers for Fe 63/63.5% (+/-0.5%) material stable at INR 10,200-10,300/t ($115-116/t) exw. The prices were stable while buying inquiries were limited.

Some Odisha-based suppliers offered pellets at INR 9,700-10,400/t ($109-117/t) DAP Raipur, with a few deals concluded by Raipur-based buyers.

Market scenario

A Raipur-based pellet supplier commented, “We have kept our offers firm this week as there is no major pressure to sell. Some plants are under maintenance shutdown, which is keeping supply tight and supporting price stability.”

Several prominent pellet producers in the region have extended their plant shutdowns for maintenance, further restricting fresh supply to the market. This has lent firmness to pellet prices, even though downstream products such as sponge iron and billets have faced downward pressure in recent days.

A local buyer mentioned, “Sponge iron and billet prices were weak for most of the week, but we have seen a slight recovery today. Still, pellet demand is largely on a need basis as buyers are cautious due to uncertain steel market sentiments.”

Meanwhile, some Raipur-based buyers have booked material from Odisha suppliers to secure material for their immediate requirements, given the limited availability from local sources.

Market participants noted that inquiries in the region were moderate, with no significant bulk deals concluded during the week. However, traders expect some improvement in demand in the coming days.

A market participant mentioned, “Pellet prices are expected to remain volatile in the near term, but we anticipate a pick-up in trading activity ahead of Diwali as buyers may restock for post-festival operations.”

NMDC scheduled an iron ore auction from its Bacheli mines, Chhattisgarh, on 9 Oct’25. Of the 43,000 t of fines offered, 21,500 t (Fe 64%) were sold at INR 5,290/t, and 2,000 t of ROM (Fe 65.5%, 10-150 mm, 6,000 t offered) were sold at INR 6,050/t. All 4,000 t of lumps (Fe 65.5%, 10-20 mm) received a 9.5% premium over the base price of INR 6,300/t. Prices are on a FOR basis, including royalty.

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 not taken for calculation. Thus, the T1 trade category was accorded 0% weightage.
• Seventeen (17) firm offers, bids, and indicative prices were heard. Thirteen (13) were taken for price calculation and given a balance of 100% weightage.

Key market drivers

• Sponge iron tags down w-o-w: P-DRI prices declined by INR 600/t ($7/t) w-o-w to INR 23,400/t ($264/t) exw-Raipur on 10 October while rising by INR 50/t ($0.5/t) d-o-d. Deals were absent in the market as buyers were cautious after the slight uptick in offers today.
• Billet prices drop w-o-w: Billet prices in Raipur decreased by INR 500/t ($6/t) w-o-w to INR 35,500/t ($400/t) exw today. Prices fell by INR 100/t ($1/t) d-o-d. Overall market sentiment remained cautious, with participants in the finished steel segment closely monitoring market sustainability, awaiting a recovery in the near term before committing to larger bookings.

Outlook

The Raipur pellet market remains supported by limited supply and stable offers, with the outlook suggesting potential movement next week as festival-related restocking begins.