India: PELLEX edges up amid limited offers

• Maintenance shutdowns at several plants limit spot volumes
• Sellers focused on fulfilling orders, inflows from Odisha limited

PELLEX, BigMint’s bi-weekly domestic pellet (Fe 63%) index for Raipur, edged up by INR 50/t to INR 10,150/t ($107/t) DAP on 31 July 2026 against 28 July, supported by firm offers by local pellet sellers amid limited material availability.

Pellet prices in Raipur continued to strengthen as producers kept offers intact, reflecting persistent supply tightness and healthy downstream demand. While buyers remained selective at the revised offer levels, trades continued to materialise as limited pellet availability kept the market undersupplied.

Rationale

• PELLEX has been derived using data points, i.e., trades, offers, and bids. To download the detailed methodology, click here.
• One (1) deal was recorded in this publishing window, and thus, one (1) was taken for calculation. Thus, the T1 trade category was accorded 50% weightage.
• Fourteen (14) firm offers, bids, and indicative prices were heard, and ten (10) were taken for price calculation and given the balance 50% weightage.

Price movements and offers

Pellet manufacturers in Raipur, Chhattisgarh, kept offers firm for Fe 62.5/63% (0.5%) grade pellets at INR 10,000-10,200/t ($104-105/t) exw.

Deals for nearly 20,000 t of pellets Fe 62.5/63% were concluded largely at INR 10,000-10,100/t DAP from Raipur-based sellers, indicating that buyers continued to procure material amid expectations of prolonged shortage of material in the market.

Market scenario

The Raipur pellet market stayed firm during the assessment period, with tight spot availability continuing to support prices. Several pellet plants remained under maintenance, while others were busy dispatching previously booked orders or consuming production internally, leaving very little material available for fresh spot sales.

The shortage was clearly reflected in market activity. A trader was heard concluding a 20,000-25,000 t deal during the week, with buyers largely accepting sellers’ asking prices as options remained limited. Market participants said negotiations were minimal, as securing material took priority over price discussions.

A Raipur-based pellet producer informed BigMint, “Most pellet plants are either under maintenance or fulfilling earlier commitments. Spot availability is extremely limited, which has allowed producers to keep offers firm.”

Unlike previous weeks, no fresh deals involving Odisha-based pellet suppliers were heard, further tightening supply in the central India market. Participants added that availability from neighbouring markets is also expected to remain constrained in the near term, as some plants continue to divert pellets for captive use while a few are still undergoing maintenance.

Despite higher prices, buying activity remained healthy. Sponge iron producers continued booking pellets to maintain production, with market participants noting that available cargoes were being sold almost immediately.

A Raipur-based buyer said “The pellet market is likely to stay supported in the coming week, as expectations of a further improvement in sponge iron prices could encourage mills to continue procuring raw materials despite elevated pellet offers.”

The market is also expected to find support from healthy downstream demand. Strong bookings in sponge iron and billets kept mills actively procuring pellets, while the ongoing monsoon continued to favour pellet consumption over iron ore lumps because of pellets’ consistent quality and lower moisture-related issues.

Participants cautioned that the current firmness may not sustain for long. They noted that the recent strength in the semi-finished steel market needs to continue for pellet prices to hold. If sponge iron or billet prices soften, pressure could quickly return to pellet producers.

At the same time, once maintenance shutdowns end and more plants resume operations, additional supplies from neighbouring markets could increase competition and limit any further upside in pellet prices.

Key market drivers

• Sponge iron prices rise w-o-w: Sponge PDRI prices increased by INR 250/t ($3/t) w-o-w to INR 25,250/t ($264/t) exw Raipur on 31 July. However, sponge iron prices in Raipur fell by INR 100/t d-o-d.  Market sentiment remained subdued lately as sluggish rebar sales continued to restrict raw sponge iron procurement. Although suppliers trimmed offers to attract buyers, elevated raw material costs and squeezed margins prevented them from implementing steeper price cuts. Despite prices already hovering at relatively low levels, buyers remained cautious, with procurement continuing only on a need-based basis.
• Billet prices decline w-o-w: BigMint’s billet index in Raipur edged lower by INR 150/t ($1.5/t) w-o-w to INR 38,350/t ($401/t) exw on 31 July. Although the market remained cautious, balanced supply conditions and lower inflow of competitively priced material from neighbouring regions prevented any significant correction in spot prices. Trading activity improved marginally compared with the previous session, with selective bookings reported in both billet and sponge iron.

Outlook

BigMint expects Raipur pellet prices to remain firm in the near term, supported by healthy deals expected to conclude in the next few days. However, buyer refrained from setting a clear expectation amid unclear trends in semi-finished steel market.