India: BigMint’s pellet export index surges $2/t w-o-w supported by recent higher grade deals

• Low alumina pellet cargo fetched good premium in sea market
• Selective buying behavior by the overseas buyers for Indian pellets

Indian pellet export prices remained firm in the week ended 28 January 2026, supported by recent export deals for higher-grade pellets concluded in the seaborne market. The improved realisations for premium-grade cargoes provided some uplift to overall export sentiment, although the broader market dynamics continued to remain cautious.

Price update

BigMint’s India pellet (Fe 63%, 3-3.5% Al) export index rose by $2/t w-o-w to $105/t FOB east coast on Wednesday. No deals of pellet exports were heard from east coast amid better domestic realisation and captive uses by the suppliers.

An Indian pellet-maker concluded around 50,000 t of pellet (Fe 65%, 7% Al2O3, and SiO2) export deals through tender recently, sources informed BigMint. Seaborne buyers expressed interest in the low-alumina material, with deals reportedly concluded at $121-122/t FOB India. Meanwhile, another seller has offered Fe 62% export cargoes in the seaborne market, with a tender scheduled today.

Market movement

According to industry participants, the conclusion of a higher-grade pellet export tender marginally boosted confidence in the seaborne market. However, traders noted that buying interest for standard-grade material remained subdued. An international trader said, “The sentiment has improved slightly after the higher-grade pellet deals, but buyers are still cautious, especially for Fe 62-63 grade pellets.”

Market sources highlighted a persistent bid-offer gap in the export market for normal Fe 63% pellets, as suppliers continue to seek higher prices amid firm raw material costs. A trader informed, “There is still a mismatch between what buyers are willing to pay and what suppliers are asking for normal-grade pellets.”

Meanwhile, some Indian pellet producers are prioritising domestic consumption over exports.

A pellet producer from Odisha mentioned that most of their production is being used for captive consumption, limiting availability in the export market. He added, “We are currently using pellets internally, and only limited volumes are being offered externally.” A few domestic transactions were reportedly concluded at better realizations, further discouraging export offerings.

Another producer noted that demand for higher-grade pellets remains strong in the export market, with deals fetching a decent premium. However, buyers remain cautious for Fe 62/63 grade cargoes due to margin pressures. Sources also indicated that Chinese mills are actively procuring higher-grade, low-alumina pellets ahead of the upcoming holiday period, while simultaneously focusing on cost efficiency amid shrinking steel margins.

Market participants expect stability in the pellet export prices in the near term, with some optimism for a potential price uptick post the Chinese holiday, depending on tender outcomes and restocking activity.

Domestic vs export market 

Domestic prices exceeded export realisations by around INR 850/t ($9/t), with the gap remaining stable w-o-w. Pellet (Fe63%) prices in Odisha’s Barbil were recorded at INR 8,750/t ($95/t) exw, rising by INR 250/t ($3/t) last weekend. Hike in OMC’s recent iron ore fines auction have supported pellet offers. Meanwhile, the ex-plant realisation in exports from Barbil rose by INR 200/t ($2/t) w-o-w to  INR 7,900/t ($86/t) exw.

Rationale

• No confirmed deal from India’s east coast was recorded in this publishing window for T1 trade. Thus, this category was allotted 0% weightage for today’s price calculations. Click here for the detailed methodology.
• Twelve (12) indicative prices were received, and ten (10) were considered for the calculation of the index and given a balance 100% weightage.

Factors impacting pellet exports

• Chinese iron ore fines prices stable w-o-w: The benchmark iron ore fines Fe 61% index remained stable w-o-w at $103/t CFR China on 27 January. The market saw improved buying interest for medium-grade fines. At Chinese ports, spot prices moved within a narrow range d-o-d, with limited liquidity. Offers remained in plenty, but buying interest was subdued as mills stayed cautious over potential price swings.
• DCE iron ore futures stable w-o-w: Iron ore futures on the Dalian Commodity Exchange (DCE) for the May 2026 contract closed at RMB 783/t ($114/t) on 21 January, unchanged w-o-w.

Outlook