- Major producer resumes pellet offers
- Decent trades in Raipur seen over last 2 days
Pellet prices in Raipur remained supported in the last couple of days, with some trades being concluded as buying interest picked up following an improvement in the sponge iron and semi-finished steel markets. Market participants indicated that the recent price hike in sponge iron and billets provided much-needed support to pellet demand after weeks of sluggish activity.
Price movements, trades
PELLEX, BigMint’s bi-weekly domestic pellet (Fe63%) index for Raipur, rose by INR 50/t to INR 9,950/t ($113/t) DAP on 31 October 2025 compared to the previous assessment on 28 October. Around 48,000 t pellet deals were concluded in Raipur at INR 9,800-10,200/t DAP concluded by local and Odisha-based producers.
Raipur-based pellet producers kept their offers for Fe 63 (+/-0.5%) material to INR 9,800-9,900/t ($111-112/t) exw. A prominent pellet seller opened pellet offer at INR 10,200/t exw Raipur after a monthlong maintenance shutdown. Some Odisha-based suppliers offered pellets at INR 9,400-9,800/t ($106-111/t) DAP Raipur, with a few deals concluded by Raipur-based buyers.
Market scenario
A Raipur-based pellet supplier said, “We have started receiving steady inquiries from sponge iron producers since mid-week, and a few deals have been finalised at current offer levels. The market sentiment has definitely improved after the rise in downstream steel prices.”
Another market participant noted that availability concerns in the Raipur market have eased slightly, as a few prominent pellet producers have resumed operations after a month-long maintenance shutdown. This development is expected to enhance supply and stabilise prices in the near term. “The return of major producers is likely to balance supply pressure and prevent sharp price fluctuations,” said a trader.
Currently, pellet offers are being kept stable by most local producers, as they continue to receive decent inquiries from sponge iron manufacturers and the small steel mills. The overall market tone remains positive but cautious, with participants closely monitoring the movement of sponge iron and billet prices in the coming days.
A steel producer said, “If the current uptrend in sponge iron continues, pellet consumption will increase further. However, prices are unlikely to rise sharply, as new supply is entering the market.”
Overall, the Raipur pellet market is witnessing steady trading activity after weeks of dullness during Diwali festival.
NMDC Chhattisgarh conducted an auction for 75,900 t of iron ore from its Bacheli mines on 30 October. The entire quantity of 12,900 t of DR CLO (Fe 67%) fetched an 18% premium (base INR 6,250/t), while 8,000 t of sized lumps (10-20 mm, Fe 65.5%) secured 13.5% premium (base INR 5,700/t). In contrast, 21,500 t of fines (Fe 64%) sold at base INR 4,790/t, and 2,000 t ROM booked at base INR 5,500/t. Prices were on 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.
- Three (3) deals were reported in this publishing window; and therefore two (2) were taken for calculation. Thus, the T1 trade category was accorded 50% weightage.
- Seventeen (17) firm offers, bids, and indicative prices were heard. Fifteen (15) were taken for price calculation and given a balance of 50% weightage.
Key market drivers
- Sponge iron sees sharp hike w-o-w: Sponge iron prices surged by INR 1,350 w-o-w and INR 600/t d-o-d to INR 23,400/t exw Raipur.
- Billet prices rise w-o-w: BigMint’s billet index witnessed a hike of INR 1,050/t against 24 Oct, settling at INR 35,550/t exw-Raipur on 31 October. Prices increased by INR 600/t d-o-d. The ongoing uptrend in billet prices was primarily supported by improved trade activity in previous sessions and positive cues from north India.
Outlook
Pellet prices are expected to remain stable in the near term, with a few more deals likely to be concluded as buying confidence strengthens in the downstream steel value chain.
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