India: PELLEX holds firm; trade remains subdued

• Iron ore fines bids rise by INR 200/t m-o-m in OMC auction
• Some eastern India based pellet suppliers hike offers by INR 200-300/t

Pellet prices in the Raipur region remained largely stable over the past couple of days, despite mixed signals from the broader steel value chain. Market sentiment remained cautious as buyers refrained from fresh bookings, awaiting more clarity on price direction.

Price movements, trades

PELLEX, BigMint’s bi-weekly domestic pellet (Fe63%) index for Raipur, remained stable at INR 9,700/t ($110/t) DAP on 21 November 2025 compared to the previous assessment on 18 November. No pellet deals were concluded in Raipur in the last couple of days.

Raipur-based pellet producers kept their offers for 63% (+/-0.5%) material stable at INR 9,600-9,800/t ($108-112/t) exw recently. Meanwhile, one prominent plant kept pellet sales closed. Some Odisha-based pellet sellers offered material in Raipur at INR 9,600-10,000/t DAP.

Market scenario

According to market participants, the recent hike in fines bids at the OMC auction – by around INR 200/t m-o-m – is expected to influence pellet prices in the eastern region. The upward trend in iron ore fines may push up raw material costs for pellet manufacturers in Raipur, prompting suppliers to adjust their offers.

A pellet trader noted, “The OMC auction outcome has surprised the market. If fines are costlier, pellet producers in Odisha will naturally push up their offers. However, Raipur-based buyers are not ready to accept any increase at this stage.”

Despite the bullish cues from Odisha, trading activity in Raipur remained muted. Local pellet producers kept their offers unchanged, but low inquiries from sponge iron manufacturers and billet makers limited transactions. The recent decline in sponge iron and semi-finished steel prices also contributed to the subdued buying interest.

A pellet producer stated, “Our offers are stable, but buyers are not actively purchasing due to uncertainty in the steel market. Until sponge iron prices stabilise, fresh pellet bookings will remain slow.”

Meanwhile, some Odisha-based pellet plants increased their offers by INR 200-300/t following the rise in iron ore fines prices. However, these higher offers were not viable for Raipur-based buyers, who are closely monitoring price movements before committing to new deals.

Market participants expect clearer pricing signals over the coming week. A steelmaker said, “If pellet prices in the eastern region rise uniformly, Raipur will eventually follow. But for now, everyone is watching and waiting.”

NMDC Chhattisgarh auctioned 85,100-t iron ore from Bacheli on 20 November, with 46,700 t booked. 12,900-t DR CLO (10-40 mm, Fe 67%, base INR 6,300/t) and 4,000-t lumps (10-20 mm, Fe 65.5%, base INR 5,750/t) were sold at 15% and 17.5% premiums, respectively. Of 43,000-t fines (Fe 64%), 8,600 t were sold at base price INR 4,790/t. 21,200-t ROM (10-150 mm, Fe 65.5%) were booked at INR 5,500/t. 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.
• No deals were reported in this publishing window, and thus, this category was not considered for calculation. Thus, the T1 trade category was accorded 0% weightage.
• Fifteen (15) firm offers, bids, and indicative prices were heard. Twelve (12) were taken for price calculation and given a balance of 100% weightage.

Key market drivers

• Sponge iron falls w-o-w: Sponge iron prices dropped by INR 200/t ($2/t) on both d-o-d and w-o-w bases on 21 November 2025, to INR 23,550/t ($265/t) exw-Raipur. Inquiries remained limited, and deals were concluded only when sellers agreed to reduce their quotes.
• Billet prices down w-o-w: BigMint’s billet index decreased by INR 200/t ($2/t) d-o-d, settling at INR 35,600/t ($401/t) exw-Raipur on 21 November. Prices fell by INR 200/t ($2/t) w-o-w. Trading activity weakened today, with most transactions occurring at lower prices. The persistent correction in finished steel led to a spillover effect on semi-finished steel, forcing billet producers to adopt competitive pricing strategies.

Outlook

Pellet prices in Raipur are expected to remain range-bound in the near term, with clearer trends likely to emerge next week. Odisha’s pellet offers and emerging trends in local prices are expected to provide further clarity on market dynamics.