India: PELLEX rise by INR 150/t ($1.5/t) as offers pick up

• Local Raipur-based sellers hike pellet offers
• Index rose post fresh mill purchases

Pellet prices in the Raipur recorded an uptick of INR 150/t ($1.5/t) on 3 February again after the upward price revision in local pellet offers observed this week. Some need-based buying was heard by regional players ahead of the the upward revision came as Raipur-based pellet producers adjusted their offers in response to improving fundamentals in the sponge iron and downstream steel market.

Trade and price movements

PELLEX, BigMint’s bi-weekly domestic pellet (Fe 63%) index for Raipur, inched up by INR 150/t ($1.5/t) to INR 10,150/t ($110/t) DAP on 3 February 2026 compared to the previous assessment on 30 January. Around 22,000 t of pellet deals (Fe 63%) were concluded in the market at INR 9,900-10,000/t exw, reflecting active trade during the publishing window, while a few plants remained in negotiations.

Raipur-based pellet producers have raised offers for Fe 62.5-63% (+/-0.5) grade pellets by around INR 200/t ($2/t) to INR 10,000-10,100/t exw on 3 February. The recent firmness in pellet prices in Raipur was supported by healthy trade activity in the semi-finished steel segment across Raipur and allied markets, which improved buying confidence.

Market scenario

Buyers noted that stronger activity in the central and eastern India sponge iron markets has improved downstream movement, creating a more supportive trade environment for raw material suppliers, while better momentum in sponge iron and related steel segments has strengthened the overall demand outlook. “The moderate trading activity was seen at the previous offers was majority of buyers have enough iron ore and pellet stocks in  their raw material inventory,” a market participant said.

A seller remarked that improved deal flow in sponge iron and allied steel segments has kept the market tone firm and constructive compared with the cautious phase seen earlier. Market sources further highlighted that Odisha-origin material continues to remain at relatively higher price levels, while local suppliers are benefiting from freight advantages and faster deal closures, helping maintain steady regional trade.

Participants broadly expect the Raipur pellet market to remain firm to stable in the near term, supported by healthy sentiment, consistent downstream demand, and sustained raw material cost levels.

Rationale

• PELLEX has been derived using data points, i.e., trades, offers, and bids. To download the detailed methodology, click here.
• Two (2) deals were recorded in this publishing window, so this category was not taken for calculation. Thus, the T1 trade category was accorded 0% weightage.
• Eleven (11) firm offers, bids, and indicative prices were heard. Five (5) were taken for price calculation and given 100% weightage.

Key market drivers

• Sponge iron prices rise w-o-w: Sponge iron prices surged by INR 750/t ($8/t) w-o-w on 3 February to INR 25,950/t ($287/t) exw-Raipur. Furthermore, prices rose by INR 450/t ($4.5/t) d-o-d. Buying activity was robust, with active trade participation seen across the eastern and central India markets as the policy positivity flew through market. Market participants noted steady enquiries and ongoing deal closures, while mills continued to dispatch previously confirmed orders alongside fresh bookings.
• Billet prices inches up w-o-w: BigMint’s billet index increased by INR 350/t ($3/t) w-o-w to INR 40,950/t ($453/t) exw-Raipur. Meanwhile, prices also rise by INR 300/t d-o-d. The day witnessed active buying interest at varied price levels, supported by positive sentiment spillover from the macro economic factors, which encouraged improved procurement across the steel value chain.