India: PELLEX softens by INR 50/t amid moderate trades

• Sellers keep offers steady, some discounted deals heard
• Rising sponge PDRI, billet prices support pellet trades

Pellet prices in the Raipur region remained largely range-bound over the past couple of days, with deals continuing to take place at prevailing offers. Market participants pointed to moderate procurement, supported by a marginally positive trend in the sponge iron and semi-finished steel segments.

Price movements, trades

PELLEX, BigMint’s bi-weekly domestic pellet (Fe63%) index for Raipur, inched down by INR 50/t ($0.5/t) to INR 9,700/t ($109/t) DAP on 14 November 2025 compared to the previous assessment on 11 November. Deals for around 45,000 t were concluded by buyers from local pellet sellers.

Raipur-based pellet producers kept their offers for 63/63.5% (+/-0.5%) material stable at INR 9,600-9,900/t ($108-111/t) exw recently. Some Odisha-based pellet sellers offered the material in Raipur at INR 9,400-9,800/t DAP.

Market scenario

Suppliers largely maintained their existing offers, citing stable inquiries from local steelmakers. Traders noted that most pellet bookings were concluded on a need-based basis, with buyers unwilling to commit to large volumes amid the still-uncertain sentiment in the broader steel value chain. A Raipur-based supplier commented, “The market is steady, and buyers are lifting material only to maintain immediate production schedules. No one wants to take excess positions at the moment.”

However, some discounted deals were also heard in the market. Some buyers exploring bulk purchasing reportedly negotiated price concessions, taking advantage of the slight uptick in downstream steel prices. A major pellet buyer shared, “We did see a couple of suppliers offering minor discounts for bulk orders. Since sponge and billet prices have shown some recovery, we are evaluating opportunities to book at favourable levels.”

The market’s attention is now firmly on the upcoming OMC iron ore auction, expected to be scheduled next week. Industry participants believe that auction outcomes will provide fresh clarity on raw material cost trends and eventually influence pellet offers in the Raipur region.

A pellet trader remarked, “All eyes are on OMC. If bids rise, pellet offers may see an upward revision; if not, the current stability may continue.”

NMDC Chhattisgarh auctioned 69,900-t iron ore from Bacheli on 13 November, with around 40,400 t booked. 12,900-t DR CLO (10-40 mm, Fe 67%, base INR 6,250/t) and 6,000-t lumps (10-20 mm, Fe 65.5%, base INR 5,700/t) were sold at 15% and 14.5% premiums, respectively. Of the 43,000-t fines (Fe 64%) offered, 21,500 t were sold at base price INR 4,790/t. 8,000-t ROM (10-150 mm, Fe 65.5%) remained unsold. Prices were on FOR basis, including royalty, DMF, and NMEDT.

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 one (1) was taken for calculation. Thus, the T1 trade category was accorded 50% weightage.
• Fifteen (15) 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 rises d-o-d: Sponge iron prices exhibited an uptrend on 14 November 2025, with prices rising by INR 250/t ($3/t) d-o-d to INR 23,700/t ($267/t) exw-Raipur. Moreover, prices rose by INR 950/t ($11/t) w-o-w. Sellers across key regions raised offers in line with the recent recovery in semi-finished steel prices, but the overall market mood remained cautious and uncertain. Buyers, supported by adequate inventories, refrained from aggressive procurement and restricted purchases to need-based deals. This lack of urgency kept demand soft amid higher quoted prices.
• Billet prices edge up d-o-d: BigMint’s billet index increased by INR 50/t ($0.5/t) d-o-d, settling at INR 35,450/t ($400/t) exw-Raipur on 14 November. Prices surged by INR 650/t ($7/t) w-o-w. The market experienced volatility throughout the day, supported by slightly positive cues from neighbouring regions. This contributed to fluctuations in spot offers, keeping market sentiment largely range-bound. Semi-finished steel saw moderate bookings at varied prices; however, finished steel sentiment remained subdued throughout the day.

Outlook

With sponge iron and semi-finished steel tags showing upward momentum, expectations are that pellet prices may remain firm in the near term, though substantial gains appear unlikely until the OMC auction.