India: PELLEX drops by INR 250/t amid recent price cuts

• Raipur pellet makers cut offers by INR 400/t
• NMDC reduces iron ore list prices this week

Pellet prices in Raipur trended lower over the past few days as weak market sentiment and subdued trading activity persisted during the festive period. The slowdown was largely driven by price cuts and sluggish demand in the sponge iron and semi-finished steel segments, which kept overall sentiment subdued.

Price movements, trades

PELLEX, BigMint’s bi-weekly domestic pellet (Fe63%) index for Raipur, dropped by INR 250/tonne (t) to 10,000/t ($114/t) DAP on 23 October 2025 compared to the previous assessment on 17 October. Deals for around 33,000 t of pellets were concluded by buyers in the last couple of days.

Raipur-based pellet producers reduced their offers for Fe 63 (+/-0.5%) material to INR 9,800-9,900/t ($112-113/t) exw. Some Odisha-based suppliers offered pellets at INR 9,700-10,200/t ($110-116/t) DAP Raipur, with a few deals concluded by Raipur-based buyers.

Market scenario

Raipur pellet prices dropped by around INR 300-400/t this week, following local pellet producers’ reduction in offers and NMDC’s iron ore price revision. The decline reflects subdued market sentiment, driven by weak demand from the sponge iron and semi-finished steel segments.

Notably, Raipur-based pellet producers reduced their offers for Fe 63/63.5% (+/-0.5%) material by INR 400/t ($5/t) to INR 9,850-9,900/t ($112/t) exw towards the closing of last week. A drop in sponge iron prices, along with cost-competitive landed pellet offers from eastern India, pulled down pellet tags in the central belt.

Additionally, NMDC, India’s largest merchant iron ore mining company, reduced its list prices of iron ore CLO (calibrated lump ore) and fines on 22 October 2025. The miner fixed prices of DR CLO (10-40 mm, Fe 67%) at INR 6,200/t ($71/t) and of iron ore fines (-10 mm, Fe 64%) at INR 4,750/t ($54/t), a drop of INR 650/t ($7/t) and INR 500/t ($6/t), respectively. Notably, the miner had last revised prices on 01 August 2025.

Market participants noted that buyers remained cautious at the revised prices, preferring to purchase only limited quantities to meet immediate production needs. A Raipur-based pellet producer stated, “Most buyers were reluctant to book large volumes, as the sponge iron market continues to face pressure. We managed to close deals only for small quantities at the new rates.”

Similarly, a sponge iron manufacturer stated, “Pellet prices have declined in line with falling semi-finished steel prices, but demand is yet to show any recovery. Many mills are operating at reduced production levels due to weak finished steel demand.”

Producers observed that inquiries were active but limited in scale, reflecting cautious sentiment among buyers. While some small-volume trades were concluded, large bulk bookings were largely absent from the market this week.

Overall, the Raipur pellet market remains under strain, with participants adopting a wait-and-watch approach.

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 reported in this publishing window; and two were taken for calculation. Thus, the T1 trade category was accorded 50% weightage.
• Sixteen (16) firm offers, bids, and indicative prices were heard. Eight (8) were taken for price calculation and given a balance of 50% weightage.

Key market drivers

• Sponge iron tags drop d-o-d: Sponge iron prices across India continued to weaken on 24 October, registering a decline of INR 50-200/t d-o-d amid muted demand and subdued trading activity. The sharpest corrections were observed in the southern region, particularly Bellary and Hyderabad, where prices fell by INR 300/t due to weak downstream demand.
• Billet prices fall w-o-w: BigMint’s billet index fell by INR 300/t w-o-w to INR 34,500/t exw-Raipur on 24 October 2025. Despite the decline, trading activity improved as lower offers and post-holiday volatility supported renewed buying and restocking.

Outlook

Pellet prices in Raipur are expected to remain under pressure in the near term, with trading activity likely to stay subdued on falling sponge prices.