India: Jindal SAW hikes iron ore pellet offers by INR 400/t ($4/t) in Kandla

• Rebound in global iron ore fines makes market at support
• Healthy sponge iron price drags Kandla offers higher

Jindal SAW recently increased its iron ore pellet offers (Fe 63+/-0.5%) for the Kandla market by INR 400/t ($4) m-o-m to INR 12,200/t DAP, primarily due to healthy demand from sponge iron producers and rising raw material costs, along with a firmer global iron ore market.

Market participants stated that recent strong pricing in semi-finished steel and uptick in finished steel prices have weighed on cost margins, resulting in rise in price of pellets. Additionally, continued hike in offers by other sellers in neighbouring markets have lent a support to upward revision of prices.

Key factors driving decline

• South African lumps prices increase m-o-m: Prices of South African lumps CNF Kandla stood at $115.5/t so far in Sept’26, edging up by $2.5/t against August 2026 prices. Hike in imported lump prices is due to global iron ore price hike in China. However, a lower preference of lumps at such elevated prices has again lent support to pellet viability as per cost economics.
• Global iron ore (Fe 61%) prices gain: The benchmark index for iron ore fines (Fe 61%) increased by $3/dmt m-o-m so far in Sept’26 to $99/dmt CFR North China against monthly average price August’26. The market rebounded from earlier drop last month due to weak buying and scheduled mill maintenance. The period was later followed by a fresh round of purchase for restocking which gave renewed buying at elevated rates.
• Billet prices increase m-o-m: Ahmedabad’s billet prices rose by INR 2,900/t m-o-m to INR 45,600/t so far in September, reflecting a continued positivity in market coupled with healthy buying. However, prices stood at INR 41,500/t today, gaining INR 500/t d-o-d. Weak finished steel demand and lower buying appetite from secondary steelmakers reduced pellet consumption.
• Jabalpur’s concentrate prices increase m-o-m: Concentrate prices in Jabalpur surged m-o-m by INR 100/t to INR 4,750/t in September, raising feedstock costs for pellet manufacturers. Moreover, additional threat posed due to disrupted production due to hampered mining operations in monsoon.

Outlook

BigMint expects pellet prices to remain broadly supported in the near term, with a sustained improvement in sponge iron demand or a recovery in iron ore prices providing further upside potential. Buying activity is likely to remain need-based, while consumers continue to monitor finished steel demand and raw material prices. Meanwhile, limited inflows from neighbouring markets due to constrained supply or reduced offerings could provide additional support and restrict any significant downside in pellet prices.