- Pellet prices remain stable in Raipur
- Lack of deals keeps market subdued
Pellet prices in Raipur have remained largely stable this week so far, amid slow market activity. Market sentiment stayed cautious but steady, as buyers closely tracked trends in the sponge iron and semi-finished steel segments where demand and prices remained subdued.
Price movements, trades
PELLEX, BigMint’s bi-weekly domestic pellet (Fe63%) index for Raipur, dipped by INR 100/t to 9,900/t ($112/t) DAP on 28 October 2025 compared to the previous assessment on 24 October. No major deals were concluded by buyers in the last couple of days.
Raipur-based pellet producers kept their offers for Fe 63 (+/-0.5%) material to INR 9,800-9,900/t ($111-112/t) exw. Some Odisha-based suppliers offered pellets at INR 9,400-9,700/t ($106-110/t) DAP Raipur, with a few deals concluded by Raipur-based buyers.
Market scenario
Pellet prices remain firm this week at INR 9,800-9,900/t ($111-112/t) exw. The decline reflects subdued market sentiment, driven by weak demand from the sponge iron and semi-finished steel segments. A drop in sponge iron prices, along with cost-competitive landed pellet offers from eastern India, pulled down pellet tags in the central belt.
Market participants remained cautious this week as the pellet market continued its downtrend, pressured by falling finished steel and sponge iron prices. With both segments witnessing weaker demand, pellet tags may soften further in the coming days.
A major steelmaker said, “Most buyers who booked earlier are still waiting for clarity on what price levels would be sustainable for trade execution,” at the ongoing uncertainty in the market. Another producer stated, “Enquiries are coming in for new bookings, but we’re still waiting for bulk orders and being kept the deal on hold for now.”
While Odisha markets saw a few moderate-volume bookings, the overall market mood remains subdued, with participants largely adopting a wait-and-watch approach amid declining sentiment.
Rationale
- PELLEX has been derived using data points, i.e., trades, offers, and bids. To download the detailed methodology, click here.
- No (0) deals were reported in this publishing window; and therefore not taken for calculation. Thus, the T1 trade category was accorded 0% weightage.
- Seventeen (17) firm offers, bids, and indicative prices were heard. Fifteen (15) were taken for price calculation and given a balance of 100% weightage.
Key market drivers
Sponge iron remain largely stable: Sponge iron prices across India continued to weaken on 28 October, slipping by INR 50-200/t from 23 October amid muted demand and subdued trading activity. However, prices in Raipur remained largely stable, with trading activity improving slightly as buyers returned to the market. Deals were reported at prevailing levels, supported by steady inquiries and moderate buying interest, while producers maintained offers to sustain momentum, keeping overall market sentiment stable.
Billet prices fall w-o-w: BigMint’s billet index witnessed a decline of INR 200/t against 23 Oct, settling at INR 34,450/t exw-Raipur on 28 October 2025. The market remained largely range-bound, supported by moderate buying activity in the semi-finished steel segment and improved sentiment from finished steel demand recovery post-holidays.
Outlook
Pellet prices in Raipur may remain under pressure as weak sponge iron and steel demand keeps buyers cautious. Trading is expected to remain muted until clearer price signals emerge, though another price correction appears likely in the near term.
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