India: PELLEX remains stable with need based demand from buyers

• Buyers waiting for a price revision
• Semis, sponge iron tags down INR 600-800/t w-o-w

Pellet prices in Raipur remained rangebound this week as trading activity was limited to need-based buying by the local steelmakers. Market participants reported muted sentiment as buyers stayed cautious amid the continuous decline in sponge iron and semi-finished steel prices, which weighed on overall demand and market confidence.

Price movements, trades

PELLEX, BigMint’s bi-weekly domestic pellet (Fe63%) index for Raipur, remained stable at INR 10,000/t ($113/t) DAP on 7 November 2025 compared to the previous assessment on 4 November. Around 15,000 t of deals were concluded by buyers from both local and Odisha-based pellet suppliers.

Raipur-based pellet producers kept their offers for Fe 63 (+/-0.5%) material at INR 9,800-10,200/t ($111-115/t) exw levels. Some Odisha pellet sellers offered the material in Raipur at INR 9,600-9,800/t DAP with pockets of trades.

Market scenario

According to sources, the recent price correction in sponge iron and billet has discouraged buyers from making bulk pellet purchases. A sponge producer said, “After last week’s sharp price hike, some buyers restocked pellets to meet short-term needs, but the downstream market couldn’t sustain the momentum. With billet and sponge prices falling again, buyers have turned highly cautious.”

Pellet producers in Raipur confirmed that inquiries have slowed down significantly over the past few days. Most producers have kept their offers unchanged, though actual deal volumes remain thin. A producer commented, “The overall market is quiet. Buyers are only lifting small quantities to maintain operations, and no major deals have been finalized recently.”

Additionally, a few Raipur-based buyers procured pellets from Odisha suppliers at relatively competitive prices, further putting pressure on local producers. Market participants said that this inflow of Odisha material could contribute to price correction in Raipur.

Market participant widely expect pellet prices to remain volatile in the coming week, with a potential downward correction likely if the steel market continues its weak trend. A market player informed, “Pellet prices will remain under pressure unless there is a rebound in sponge iron and steel demand. The sentiment is clearly on the softer side right now.”

Rationale

• PELLEX has been derived using data points, i.e., trades, offers, and bids. To download the detailed methodology, click here.
• Two deals were reported in this publishing window; and not taken for calculation. Thus, the T1 trade category was accorded 0% weightage.
• Eighteen (18) firm offers, bids, and indicative prices were heard. All were taken for price calculation and given a balance of 100% weightage.

Key market drivers

• Sponge iron drop w-o-w: Sponge iron prices exhibited a downtrend on 7 November 2025, with prices fell by INR 650/t w-o-w and INR 50/t to INR 22,750/t exw-Raipur. Prices decreased as weak demand and limited inquiries continued to weigh on market sentiment. Most trades were concluded at lower price levels, reflecting buyers’ cautious stance, while producers resisted deeper price cuts despite persistent selling pressure in key producing regions.
• Billet prices fall w-o-w: BigMint’s billet index dropped by INR 750/t w-o-w, settling at INR 34,800/t exw-Raipur on 7 November. Prices fell by INR 150/t d-o-d. Market volatility persisted following news of a possible safeguard duty implication, prompting some participants to secure need-based bookings in anticipation of short-term price fluctuations. However, overall buying in finished steel remained weak, with end-user demand yet to show signs of recovery.

Outlook

The Raipur pellet market is witnessing limited momentum, reflecting ongoing weakness in the broader steel market. Market participants are of the opinion that a rebound in demand is vital for a rebound prices.