India: PELLEX remains stable amid weakening market momentum

• Sponge iron and billet tags drop sharply w-o-w
• Market awaits today’s OMC iron ore auction results

Pellet prices in Raipur witnessed a marginal pressure in the last couple of days as market sentiments weakened amid muted trading activity and limited participation from suppliers. The market slowdown was primarily attributed to sluggish demand in the sponge iron and semi-finished steel segments, which continued to weigh on buying interest.

Price movements, trades

PELLEX, BigMint’s bi-weekly domestic pellet (Fe63%) index for Raipur, remained stable at INR 10,250/t ($116/t) DAP on 17 October 2025 compared to the previous assessment on 14 October. Around 10,000 t of pellet deals were concluded by the buyers in the last couple of days from Odisha-based pellet suppliers

Raipur-based pellet producers kept their offers for Fe 63 (+/-0.5%) material stable at INR 10,100-10,200/t ($114-115/t) exw. The prices were stable while buying inquiries were limited.

Some Odisha-based suppliers offered pellets at INR 9,700-10,200/t ($110-116/t) DAP Raipur, with a few deals concluded by Raipur-based buyers.

Market scenario

Market participants highlighted that several major pellet producers in Raipur remain under maintenance shutdown, resulting in limited supply in the spot market. A source said, “Most large plants are still on maintenance and will likely resume offers post-Diwali. Hence, only a few local suppliers are actively offering material.”

Buyers also pointed to the ongoing pressure on sponge iron and semi-finished steel prices as a key factor behind the weak pellet demand. A Raipur-based buyer said, “Sponge iron prices have been falling due to low buying activity, and steel demand has slowed. This has directly impacted pellet consumption in the region.”

Another market source added that steelmakers are adopting a cautious approach and waiting for a clear price direction before making fresh bookings. He added, “Buyers are holding back their procurement, anticipating further correction in prices post-Diwali. We expect new offers to emerge next week at slightly lower levels.”

Additionally, traders noted that the outcome of the ongoing OMC iron ore auction is likely to impact the short-term pellet market sentiment. A trader informed, “Hence, the OMC auction results are announced, the market will have better price clarity, which may set the tone for fresh trades.”

In the NMDC Chhattisgarh iron ore auction on 16 October. 4,000-t Baila-sized lumps (10-20 mm, Fe 65.5%) sold at 19% premium over INR 6,300/t base prices. However, 6,000-t ROM (10-150 mm, Fe 65.5%) and 43,000 t fines (Fe 64%) fines remained unsold. Prices include 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.
• Twenty-one (21) firm offers, bids, and indicative prices were heard. Eleven (11) 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 1,100/t ($12/t) w-o-w to INR 22,300/t ($253/t) exw-Raipur on 17 October while falling by INR 250/t ($3/t) d-o-d. Despite ongoing selling pressure, most sponge iron producers avoided aggressive price cuts to maintain market stability. However, buyers remained cautious, and most deals were settled at lower prices, indicating a lack of confidence in any near-term recovery. Sellers held back from deeper discounts, but the overall tone stayed weak, with limited support seen from downstream sectors.
• Billet prices drop w-o-w: Billet prices in Raipur decreased by INR 700/t ($8/t) w-o-w to INR 34,800/t ($395/t) exw today. Prices fell by INR 50/t ($0.5/t) d-o-d. The market stayed largely range-bound, with minor corrections seen towards the end of the trading session. Although moderate bookings in semi-finished steel were observed at lower prices, finished steel demand continued to lag, restricting any meaningful recovery in market activity.

Outlook

Pellet prices in Raipur are expected to remain under mild pressure in the near term, with trading activity likely to stay subdued through the festive week before stabilizing after Diwali.