India: PELLEX drops INR 250/t ($2.5/t) as suppliers reduce offers

• Weak buyer inquiries weigh on prices
• Raipur pellet makers cut INR 200/t 

PELLEX, BigMint’s bi-weekly domestic pellet (Fe 63% +/- 0.5%) index for Raipur registered a decline of INR 250/t to INR 11,000/t DAP Raipur on 25 September 2026 against 22 September.

Raipur pellet prices declined as weak buying interest and softer steel realisations reduced buyers’ willingness to procure at elevated levels. Falling sponge iron and billet prices added pressure, while rain-related logistics disruptions affected market activity. The absence of major transactions and lower offers in neighbouring markets further reinforced the correction.

Rationale

• PELLEX has been derived using data points, i.e., trades, offers, and bids. To download the detailed methodology, click here.
• Zero (0) deals were recorded in this publishing window and was taken for calculation. Thus, the T1 trade category was accorded a weightage of 0%.
• Eighteen (18) firm offers, bids, and indicative prices were heard, of which seventeen (17) were taken for price calculation and given the balance 100% weightage.

Price movements and offers

Active pellet manufacturers in Chhattisgarh reduced their offers for Fe 62.5/63% (+/-0.5%) grade pellets by INR 200/t to INR 10,800-10,900/t exw Raipur amid lack of active deals in the current market. Buyers showed least interest to grab at the falling prices.

No major pellet deals for (Fe 63% +/- 0.5%) was reported during the assessment period. While buying remained absent at current price levels, sellers continued to be under reasonably under slight pressure to liquidate material.

Market scenario

Market participants said the prolonged strength in pellet prices is beginning to lose momentum as buying interest weakens and downstream steel realisations come under pressure.

A Raipur-based buyer told BigMint that pellet prices remain relatively high compared with current market conditions, while weak demand for semi-finished and finished steel has reduced buyers’ ability to absorb higher raw material costs. This has made buyers increasingly unwilling to accept pellet prices at earlier levels.

The recent correction in sponge iron and billet prices has added further pressure to pellets. As per buyers, weaker downstream realisations are prompting buyers to reassess procurement requirements and avoid building inventories at elevated prices.

Rain-related disruptions have also continued to affect market activity, with logistical constraints hampering the movement and availability of material across the region.

Raipur-based sellers told BigMint that they had largely maintained their offers over the past few assessment windows, despite limited buyer interest. However, as sentiment has weakened, buyers have become more reluctant to commit to fresh volumes at prevailing levels and are instead waiting for the market to establish a clearer price direction.

Meanwhile, no significant transactions were reported from neighbouring markets into Raipur and nearby regions. Weakness was also visible in other pellet markets, including Durgapur, where some major sellers were reportedly heard to have lowered their offers by around INR 200/t.

Market participants said some correction was expected following the sustained increase in pellet prices. However, both buyers and sellers continue to monitor the possibility of a recovery in semi-finished steel prices, particularly billet and sponge iron, which could provide some support to pellet demand and pricing.

Key market drivers

• Sponge iron prices fall w-o-w: Sponge PDRI prices stood at INR 28,050/t ($305/t) exw Raipur, softening by INR 1,150/t w-o-w on 25 September against 18 September. Demand, however, did not keep pace with prices. Most buyers had covered their near-term requirements during the previous session’s active trade and held back from fresh bookings at higher offers. Finished steel prices also rose by INR 100-500/t across regions, but end-user demand at these levels remained subdued. Trade momentum stayed weak, with no major bulk deals reported and purchases limited to immediate needs.
• Billet prices inch down w-o-w: BigMint’s billet index in Raipur fell by INR 650/t ($6/t) w-o-w to INR 44,000/t ($460/t) exw on 22 September 2026 against 15 September. Billet index rose by INR 350/t d-o-d, supported by improved bookings concluded in the previous trading session. However, buyers who secured sufficient material yesterday remained cautious today, limiting fresh buying activity. Market activity remained volatile, with positive price cues from nearby markets contributing to fluctuations in spot offers. Market participants remained focused on the consistency of finished steel demand, keeping buyers from neighbouring regions cautious in their purchasing decisions.

Outlook