- Raipur-based sellers keep offers firm, no deals closed
- Weak sponge iron demand weighs on pellet trades
Pellet prices in Raipur remained largely stable over the last 3-4 days, with trading activity staying subdued due to weak market fundamentals. Market participants noted that the continued pressure on sponge iron and semi-finished steel prices kept buyers on the sidelines, limiting any significant movement in pellet bookings.
Price movements, trades
PELLEX, BigMint’s bi-weekly domestic pellet (Fe63%) index for Raipur, inched down by INR 50/t ($0.5/t) to INR 9,650/t ($108/t) DAP on 25 November 2025 compared to the previous assessment on 21 November. Deals remained under pressure, and inquiries were fewer in the market. Meanwhile, no deals were concluded by Raipur buyers amid weak market sentiments.
Raipur-based pellet producers kept their offers for 63% (+/-0.5%) material stable at INR 9,500-9,800/t ($107-110/t) exw recently. Meanwhile, one prominent plant kept pellet sales closed. Some Odisha-based pellet sellers offered material in Raipur at INR 9,600-10,000/t DAP.
Market scenario
A sponge iron producer informed BigMint, “The sponge iron market is not providing any support right now. At these prices, pellet buying does not make sense for most plants.” Muted demand was also seen for Odisha-origin pellets, offers for which were considered high and unviable for Raipur-based buyers, given freight costs and lean conversion margins.
Sources stated that several sponge iron plants in the region have started shifting to DRCLO as their primary raw material due to the reduced cost-effectiveness of pellets. A steelmaker added, “Pellets are simply not workable for us at present. DRCLO offers better yield and lower overall cost in the current market.”
However, a few steel plants continue to feed pellets, having already secured sufficient volumes in recent weeks. These buyers were out of the spot market, which contributed to lower trading activity. A buyer said, “We covered our requirements earlier in the last round of price correction by suppliers. For now, there is no urgency to buy material.”
Market sources expect that, unless there is an improvement in sponge iron demand and prices or a shift in raw material prices, pellet trade in Raipur will likely remain under pressure.
A pellet supplier stated, “The market is in a wait-and-watch mode. Buyers will step out only if there is clarity on sponge iron pricing or if pellet offers correct further. We are not even getting inquiries from pellet buyers.”
Rationale
- PELLEX has been derived using data points, i.e., trades, offers, and bids. To download the detailed methodology, click here.
- No deals were reported in this publishing window, and thus, this category was not considered 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 falls w-o-w: Sponge iron prices dropped by INR 150/t ($2/t) w-o-w and INR 100/t ($1/t) d-o-d on 25 November 2025, to INR 23,600/t ($265/t) exw-Raipur. Buying interest remained limited, as downstream demand continued to soften.
- Billet prices up w-o-w: BigMint’s billet index increased by INR 100/t ($1/t) d-o-d and INR 250/t ($3/t) w-o-w, settling at INR 35,950/t ($403/t) exw-Raipur on 25 November. Market activity was largely restricted to need-based procurement. However, some deals were heard closed at higher prices, primarily with buyers in neighbouring regions, who took advantage of favourable freight costs. This pushed the index up.
Outlook
Pellet prices in Raipur are expected to remain volatile in the coming days. Although market sentiment is subdued, iron ore offers in Odisha are trending higher after recent auctions.
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