India: PELLEX edges up by INR 50/t on active trades

• Liquidity increases post resumption of plant operations
• Healthy trade at elevated offers supports current prices

PELLEX, BigMint’s bi-weekly domestic pellet (Fe 63%) index for Raipur, edged up by INR 50/t to INR 10,200/t ($107/t) DAP on 4 August 2026 against 31 July, supported by firm offers by local pellet sellers coupled with active procurement for pellets.

Pellet prices in Raipur continued to strengthen as producers kept offers unchanged, 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.
• Three (3) deals were recorded in this publishing window, of which, two (2) were taken for calculation. Thus, the T1 trade category was accorded 50% weightage.
• Twelve (12) firm offers, bids, and indicative prices were heard, and all 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 ($105-107/t) exw.

Deals for nearly 45,000-50,000 t of pellets Fe 62.5/63% were concluded largely at INR 10,150-10,350/t DAP from Raipur-based sellers, indicating that buyers continued to procure material amid expectations of further hike in pellet prices and active shortage of material over the past few weeks.

Market scenario

The Raipur pellet market remained firm during the assessment period, with trading activity continuing at a healthy pace. Although supply has started returning to the market, availability continues to remain balanced, while healthy buying interest from sponge iron producers has enabled sellers to sustain firm offer levels.

Market participants highlighted that the brief weakness witnessed in the sponge iron market over the weekend proved short-lived. Prices inched up at the beginning of the week, prompting buyers to return to the market to secure raw material. The improvement in downstream sentiment translated into healthy pellet bookings, with mills preferring to procure cargoes before any further increase in prices.

A Raipur-based trader said, “Liquidity has improved compared with last week as a few pellet plants have resumed operations after maintenance. More sellers have returned to the market, but buying has also picked up sharply. Buyers are rushing to secure material as sponge iron prices have started recovering again, so most available cargoes are getting booked quickly.”

Healthy deals were concluded by local pellet sellers during the assessment period, reflecting steady demand despite elevated offer levels. Market participants noted that negotiations remained limited, with buyers focusing on securing timely supplies rather than waiting for price corrections.

Participants added that inflows from neighbouring markets, particularly Odisha, remained limited, keeping competition under check and allowing Raipur-based sellers to dominate spot trades. At the same time, some producers continued to prioritise captive consumption and previously booked orders, preventing any sharp increase in spot availability.

A Raipur-based buyer said, “The correction in sponge iron prices over the weekend did not last long. As the market recovered at the start of the week, most mills stepped up pellet procurement to avoid supply disruptions. Demand is likely to remain healthy as long as sponge iron and billet prices stay supported.”

Market participants expect the pellet market to remain stable to firm in the near term. Healthy downstream bookings, improving trading liquidity, and balanced availability are expected to support prices, while the gradual return of supplies following maintenance shutdowns is likely to improve market liquidity without creating oversupply. The overall sentiment remains positive, with most participants expecting healthy trade volumes to continue over the coming sessions.

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 25,750/t ($270/t) exw Raipur on 4 August. The price increase was primarily supported by healthy buying interest witnessed a day earlier, which encouraged suppliers to raise their offers. Despite the firmer price trend, trading activity remained subdued during today’s session. Many buyers were reluctant to accept the revised offer levels, as several had already secured sufficient material in earlier trades. Consequently, market activity was largely limited to enquiries and need-based purchases, while bulk transactions remained scarce. Buyers largely maintained a wait-and-watch approach amid the higher offer levels.
• Billet prices stable w-o-w: BigMint’s billet index in Raipur remained largely rangebound w-o-w at INR 38,950/t ($409/t) exw on 4 August. On the supply side, producers attempted to hold offers at higher levels, supported by firm raw material costs and earlier billet bookings to neighbouring markets. However, softer domestic demand and competitive pricing across key producing regions offset these supportive factors, resulting in a largely range-bound market with a slight downward bias.

Outlook

BigMint expects Raipur pellet prices to remain firm in the near term, supported by healthy seasonal demand amid ongoing monsoon procurement along with northward momentum in the sponge iron and semi-finished markets. However, material availability may improve as a couple of plants started production after maintenance shutdowns.