- Producers raise offers by INR 300/t on tight supply
- Sponge iron, billet prices strengthen w-o-w
PELLEX, BigMint’s bi-weekly domestic pellet (Fe 63%) index for Raipur, rose by INR 250/t to INR 10,100/t ($105/t) DAP on 24 July 2026 against 21 July.
Pellet prices in the Raipur region increased by INR 200-300/t in the latest assessment cycle after local producers raised offers again, marking the fourth price hike in July. The upward revision reflects seasonal benefits, improved sentiment across the steel value chain, supported by stronger sponge iron and semi-finished steel prices, coupled with tightening pellet availability in the market.
Rationale
- PELLEX has been derived using data points, i.e., trades, offers, and bids. To download the detailed methodology, click here.
- Three (3) deals were recorded in this publishing window, and thus, one (1) was taken for calculation. Thus, the T1 trade category was accorded 50% weightage.
- Thirteen (17) firm offers, bids, and indicative prices were heard, and eight (8) were taken for price calculation and given the balance 50% weightage.
Price movements and offers
Pellet manufacturers in Raipur, Chhattisgarh, increased offers for Fe 62.5/63% (0.5%) grade pellets by INR 300/t ($3/t) to INR 9,900-10,000/t ($103-104/t) exw. This marks the fourth hike during July (till date) from Raipur-based pellet makers. Cumulatively, offers have been increased by INR 1,000/t.
Deals for around 19,000 t of pellets were recorded by Raipur-based sellers at INR 9,700/t exw at previous offers in this publishing window.
Market scenario
Market participants said the recent improvement in sponge iron and billet prices encouraged pellet producers to raise offers, as downstream steelmakers resumed procurement on a need-based basis. Better trading activity in the semi-finished steel segment over the last few days also strengthened confidence among sellers, allowing them to push prices higher.
A Raipur-based pellet seller commented, “A couple of pellet plants have either closed their sales or are offering limited quantities because they are still dispatching material sold earlier this month. The reduced spot availability has tightened the demand-supply balance, giving producers the confidence to increase offers for the fourth time this month.”
Another producer noted that inventories remain under control and fresh production is largely committed against previous bookings. “With lower spot supply, buyers have limited options, which is keeping pellet prices on the higher side despite cautious purchasing,” the participant added.
Demand has also received seasonal support from the ongoing monsoon. According to a Raipur-based buyer, “Many sponge iron producers are preferring pellets over iron ore lumps during the rainy season, as pellets offer more consistent quality and eliminate concerns related to excess moisture in lump ore. This has resulted in better pellet enquiries over the past week.”
Market participants also highlighted that the recent recovery in sponge iron and billet prices has provided additional support to pellet offers, helping the Raipur market remain at the higher end of the price range.
Despite the increase in offers, no significant fresh deals were reported at the revised price levels during the assessment period. Buyers are currently adopting a wait-and-watch approach, seeking greater clarity on whether the higher offers will sustain before concluding large-volume purchases.
Notably, NMDC sold 27,500 t of iron ore at its Chhattisgarh auctions held on 23 July, significantly lower than the 73,100 t sold in the previous auction on 16 July, as weak buying interest continued to weigh on fines procurement. At Bacheli, the entire 21,500 t of DR CLO (10-40 mm, Fe 67%) was booked at INR 6,570/t (FOR) against a base price of INR 5,900/t, reflecting a premium of INR 670/t, up INR 60/t from the previous auction. Meanwhile, 6,000 t of iron ore lumps (10-20 mm, Fe 65.5%) were sold at the base price of INR 5,600/t.
Key market drivers
- Sponge iron prices rise w-o-w: Sponge PDRI prices increased by INR 1,450/t ($15/t) w-o-w to INR 25,000/t ($259/t) exw Raipur on 24 July. Furthermore, sponge iron prices in Raipur surged by INR 550/t d-o-d. Central India remained the strongest performer, with several sponge iron producers already carrying full order books and continuing to secure fresh bulk deals during the day. The sustained buying interest suggests that consumers are actively covering their monsoon requirements. In the eastern region, producers supplied material to central India at competitive prices, resulting in healthy booking activity and supporting demand across both markets.
- Billet prices increase w-o-w: BigMint’s billet index in Raipur rose by INR 700/t ($7/t) w-o-w to INR 38,500/t ($398/t) exw on 24 July. Additionally, the index increased by INR 250/t d-o-d, as improved buying interest and a surge in bookings across the semi-finished steel segment supported a strong recovery in spot prices. Stronger procurement of both billet and sponge iron marked a notable turnaround in market sentiment after a period of subdued trading.
Outlook
BigMint expects Raipur pellet prices to remain firm in the near term, supported by balanced demand-supply conditions, limited spot availability, and improving downstream steel market sentiment. However, fresh trade volumes are likely to depend on buyer acceptance of the revised offer levels in the coming days.
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