- Raipur sellers maintain their pellet offers
- Sharp fall in billet prices upto INR 1,250/t w-o-w
PELLEX, BigMint’s bi-weekly domestic pellet (Fe 63%) index for Raipur, fell by INR 50/t ($0.5/t) to 10,000/t ($105/t) DAP on Friday compared to 5 May. BigMint recorded deals for around 30,000 t, concluded at INR 9,800-10,000/t ($105/t) exw-Raipur by local pellet producers.
Rationale
- PELLEX has been derived using data points, i.e., trades, offers, and bids. To download the detailed methodology, click here.
- Three (3) deals was recorded in this publishing window, and was taken for calculation. Thus, the T1 trade category was accorded 50% weightage.
- Twenty-three (23) firm offers, bids, and indicative prices were heard, and twenty-two (22) were taken for price calculation and given the balance 50% weightage.
Trades and price movements
Pellet prices in the Raipur region remained largely stable during the mid-week trading session, with limited deals concluded following NMDC iron ore price hike for May deliveries. Market participants noted that the rise in iron ore prices provided temporary support to pellet offers, although overall sentiments in the downstream steel market continued to remain weak.
Raipur-based producers kept their offers stable for 62.5/63% (+/-0.5%) material at INR 9,900-10,000/t ($104-105/t) exw this week.
Some Odisha-based producers offered pellet (Fe 62.5-63%) to Raipur-based buyers at INR 9,500-9,900/t ($101-106/t) DAP Raipur, but no deals were recorded in the last couple of days.
India’s largest merchant iron ore mining company, NMDC, announced its list prices of iron ore CLO (calibrated lump ore) and fines on 6 May 2026, BigMint learnt from sources. The miner has fixed prices of DR CLO (10-40 mm, Fe 67%) at INR 6,150/tonne (t) ($65/t) and of iron ore fines (-10 mm, Fe 64%) at INR 4,700/t ($49.5/t). Prices are on FOR basis from the miner’s Bacheli complex and exclude royalty, DMF, and NMEDT. Prices of all grades increased in the range of INR 200-250/t.
Market scenario
A sponge iron producer commented, “Pellet transactions were reported at steady levels despite mounting pressure from falling sponge iron and billet prices in central India. The increase in NMDC iron ore prices prevented a sharper correction in pellet offers, but buyers were still reluctant to enter bulk procurement due to subdued finished steel demand.”
Pellet producers maintained their official offers during the week and continued to seek deals at prevailing levels. However, a few spot transactions were reportedly concluded at discounted prices as sellers attempted to secure orders amid weak market activity.
A pellet manufacturer mentioned, “The inquiries in the market remained limited and were largely restricted to small-volume or need-based purchases. Demand is still sluggish and there is no aggressive buying interest from sponge iron manufacturers. Most buyers are purchasing only for immediate consumption.”
Meanwhile, buyers are expecting some correction in pellet offers in the coming days due to increasing competition from neighboring regions. Market sources indicated that comparatively competitive pellet prices from producers in nearby regions have started influencing buyer sentiments in Raipur as well.
Another buyer stated that downstream steel market weakness continues to impact raw material procurement decisions. He added, “Billet and sponge iron prices have softened, so buyers are cautious. Many participants are waiting for pellet prices to ease further before confirming fresh bookings.”
Overall, the Raipur pellet market remained stable but under pressure during the week, with subdued trading activity and cautious market sentiment prevailing in the regional market outlook.
Key market drivers
- Sponge iron prices firm w-o-w: Sponge PDRI prices dropped by INR 200/t ($2/t) w-o-w to INR 25,600/t ($271/t) exw Raipur on 8 May. Prices dropped by INR 50/t d-o-d today. Weak finished steel demand continued to exert pressure on raw material prices, limiting aggressive buying interest across regions. Market participants maintained a cautious stance, with weak downstream demand and restrained procurement continuing to limit overall trade activity.
- Billet prices down w-o-w: BigMint’s billet index in Raipur decreased by INR 1,250/t ($13/t) w-o-w to INR 40,850/t ($432/t) exw on 8 May. Prices fell by INR 350/t ($3.5/t) d-o-d today. Market activity remained sluggish throughout the session, with muted buying interest and limited enquiries in the semi-finished steel segment. However, the price cuts failed to stimulate buying interest, as expectations of further corrections kept market participation limited and transactions largely need-based.
Outlook
Pellet prices in Raipur may see a downward price correction in the near term due to weakened demand and a fall in the sponge iron and semi-finished steel prices.
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