India: PELLEX climbs up by INR 250/t ($3/t) in recent deals at revised offers

• Pellet offers in Raipur rise by INR 200/t this week
• Active deals heard at revised offers

Pellet prices in Raipur have increased by INR 200/t following a hike in offers by local pellet producers earlier this week. Market sources reported that some need-based deals were concluded at revised levels, supporting the price increase.

BigMint’s bi-weekly domestic pellet (Fe63%) index increased by INR 250/t ($2/t) to INR 10,100/t ($117/t) DAP Raipur on 21 March 2025 compared to the previous assessment on 18 March. In this publishing window, around 45,000 t of pellet (Fe62/63%) deals were concluded by Raipur-based steelmakers at INR 9,950-10,150/t DAP Raipur. A deal of around 15,000 t of high-grade pellets (Fe65%) was also concluded in Raipur.

Pellet offers in Raipur for Fe63% (+/- 0.5%) material have risen by INR 200/t ($2/t) to INR 9,900-10,000/t ($114-115/t) exw over the past couple of days.

A Raipur-based steelmaker confirmed purchasing raw materials in limited quantities to meet immediate production requirements. “We had to procure some lots to meet operational needs, but overall demand remains subdued as most buyers are cautious with the financial year-end approaching.”

In addition, iron ore fines bids in recent auctions increased by around INR 200/t, which could prompt Odisha-based pellet producers to adjust their offers upward.

A steelmaker commented: “With raw material prices firming up, pellet prices may see further increase in the near term, especially in the eastern region.”

Despite these factors, Raipur steelmakers expect the market to remain largely stable, with trading activity slowing down as the financial year draws near.

A market participant informed, “Most buyers are holding back major purchases, as the focus is on closing books rather than stocking up raw materials.”

Meanwhile, strong sponge iron and billet prices may encourage selective need-based deals at current offers, although overall sentiment remains cautious.

Rationale

• PELLEX has been derived using data points, i.e., trades, offers, and bids. To download the detailed methodology, click here.
• Four (4) deal has been reported so far in this publishing window and was taken for calculations. The T1 trade category was accorded 50% weightage.
• Fifteen (15) firm offers, bids, and indicative prices were heard. Twelve (12) were taken for price calculation and given the balance 50% weightage.

Factors impacting pellet prices

• Sponge iron tags rise w-o-w: P-DRI prices rose by INR 1050/t ($12/t) w-o-w to INR 26,150/t ($304/t) exw-Raipur on 21 March. Meanwhile, prices increased by INR 250/t ($3/t) d-o-d today. Improved trading activity contributed to the price rise.
• Billet prices increase w-o-w: Billet prices in Raipur rose by INR 1,300/t ($15/t) w-o-w to INR 41,250/t ($480/t) exw today. However, d-o-d, prices remained largely stable d-o-d.

Outlook

Raipur pellet prices are expected to remain stable in the coming days ahead of the year-end closure.