India: PELLEX holds stable despite limited buying interest

• Buying interest remains limited amid weak downstream demand
• Upcoming maintenance shutdowns may weigh on pellet production

PELLEX, BigMint’s bi-weekly domestic pellet (Fe 63%) index for Raipur, remained unchanged at INR 10,200/t ($107/t) DAP on 11 August 2026 against the previous assessment on 7 August, as buying interest remained limited despite hike in seller offers.

Raipur based pellet makers hike offer by INR 100/t, although market activity weakened during the assessment period. Buyers adopted a cautious approach amid weak demand in the finished and semi-finished steel segments, while expectations of upcoming maintenance shutdowns at local rolling mills and sponge iron units further weighed on near-term procurement. Despite limited buying interest, relatively tight spot availability allowed sellers to maintain prevailing offer levels.

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. Thus, the T1 trade category was accorded weightage.
• Eighteen (18) firm offers, bids, and indicative prices were heard, of which fourteen (14) were taken for price calculation and given the balance weightage.

Price movements and offers

Pellet manufacturers in Raipur, Chhattisgarh, hike offers for Fe 62.5/63% (0.5%) grade pellets to INR 10,100-10,200/t ($105-107/t) exw recently this week.

One deal of 25,000 t of Fe 62.5/63% grade pellets were reported to BigMint from a Raipur-based seller during the assessment period. However, overall spot trading activity remained limited, with buyers largely restricting purchases to immediate requirements.

Market scenario

The Raipur pellet market remained stable during the assessment period, although buying interest remained limited amid weak downstream demand. While buyers showed resistance to prevailing price levels and largely restricted purchases to immediate requirements.

Market participants reported limited transaction activity during the assessment period. Several traders and sellers indicated subdued fresh enquiries, with one seller noting that even offers at INR 10,000-10,100/t ex-works were struggling to attract buyer interest, highlighting the weakness in current demand.

On the demand side, buyers remained cautious amid expectations of lower pellet consumption in the near term. A Raipur-based buyer said several local rolling mills and sponge iron units are likely to undergo maintenance shutdowns from next week, which could further reduce raw material requirements. Weak demand in both finished and semi-finished steel markets has also prompted consumers to avoid bulk procurement at current price levels.

Another buyer said that spot availability remained relatively tight as several sellers were still engaged in executing previously booked orders. However, buyers continued to indicate procurement interest at around INR 9,800-9,900/t, implying a discount of over INR 200/t from prevailing offer levels.

Inter-market trade activity also remained muted, with limited pellet movement into Raipur from key neighbouring markets such as Jharsuguda and Raigarh during the assessment period.

Key market drivers

• Sponge iron prices down w-o-w: Sponge PDRI prices fell by INR 250/t w-o-w to INR 25,500/t ($269/t) exw Raipur on 11 August however d-o-d prices increased by INR 500/t today. Buyers had already secured sufficient inventories, restricting purchases to immediate requirements. Weak finished steel demand continued to weigh on sponge iron consumption, while elevated raw material costs squeezed producers’ margins.
• Billet prices also fall w-o-w: BigMint’s billet index in Raipur soften by INR 400/t w-o-w to INR 38,550/t ($404/t) exw on 11 August. However, prices gained around INR 500/t today. Better movement in rebar and other finished products encouraged buyers to step up procurement, although demand is yet to strengthen enough to trigger a sustained price recovery.

Outlook

BigMint expects Raipur pellet prices to remain rangebound with a stable-to-soft bias in the near term. Weak downstream demand, upcoming maintenance shutdowns and cautious buying are likely to limit trading activity. However, relatively tight spot availability and firm seller offers could provide some downside protection.