India: PELLEX falls INR 250/t ($3/t) after local pellet suppliers slash offers

• Falling sponge iron, semis prices pressure pellet tags
• Market sees need-based trade amid cautious sentiment

Pellet prices in Raipur declined by around INR 300/t over the past couple of days as local producers reduced their offers in response to falling sponge iron (PDRI) and semi-finished steel tags. Market participants stated that the price correction followed a sustained weakness in downstream steel demand, while trade improved amid the drop in prices.

Price movements, trades

PELLEX, BigMint’s bi-weekly domestic pellet (Fe63%) index for Raipur, decreased by INR 250/t ($3/t) to INR 9,750/t ($110/t) DAP on 11 November 2025 compared to the previous assessment on 7 November. Deals for around 115,000 t were concluded by buyers from both local and Odisha-based pellet suppliers.

Raipur-based pellet producers reduced their offers for 63/63.5% (+/-0.5%) material by INR 300/t ($3.5/t) to INR 9,600-9,900/t ($108-111/t) exw recently. The downward revision follows last week’s persistent weakness in sponge iron and semi-finished steel prices, coupled with sluggish market sentiment and limited buying interest from downstream sectors.

Some Odisha-based pellet sellers offered the material in Raipur at INR 9,400-9,800/t DAP, with a moderate volume of deals concluded.

Market scenario

Buyers showed a moderate response to revised prices, with some bookings concluded, primarily on a need basis only. A pellet supplier stated, ” The recent fall in sponge iron and billet prices prompted sellers to cut pellet offers. We sold some decent material at new prices to multiple buyers. However, overall, buyers are still cautious and waiting for clarity before making bulk purchases.”

According to sources, competitive offers from Odisha-based suppliers further pressured the Raipur market. A trader informed BigMint, “Odisha-based producers are offering material at slightly lower prices, making Raipur producers adjust their offers to stay competitive.” Some buyers reportedly secured Odisha-origin material before the latest Raipur price revisions, adding to the subdued local demand.

A prominent pellet seller in Raipur noted, “We are waiting for some deal momentum to pick up as the market stabilizes.”

A buyer said, “Some recovery in sponge iron and billet prices over the past two days could lend partial support, but overall sentiments remain cautious. Trade improved after the price cuts, as some steelmakers booked need-based quantities following the revised offers.”

NMDC Chhattisgarh auctioned 69,900 t of iron ore from Bacheli on 7 November 2025. All 12,900-t DR CLO (10-40 mm, Fe 67%, base INR 6,250/t) and 6,000-t lumps (10-20 mm, Fe 65.5%, base INR 5,700/t) were sold at 11% and 12.5% premiums, respectively. Meanwhile, of the 43,000-t fines (Fe 64%) offered, 12,900 t were sold at base price INR 4,790/t, while 8,000-t ROM (10-150 mm, Fe 65.5%) remained unsold. Prices were on FOR basis, inclusive of royalty, DMF, and NMEDT.

Rationale

• PELLEX has been derived using data points, i.e., trades, offers, and bids. To download the detailed methodology, click here.
• Six (6) deals were reported in this publishing window, and all were taken for calculation. Thus, the T1 trade category was accorded 50% weightage.
• Seventeen (17) firm offers, bids, and indicative prices were heard. Fifteen (15) were taken for price calculation and given a balance of 50% weightage.

Key market drivers

• Sponge iron rises d-o-d: Sponge iron prices exhibited an uptrend on 11 November 2025, with prices rising by INR 250/t ($3/t)d-o-d to INR 23,050/t ($261/t) exw-Raipur. However, prices dropped by INR 200/t ($2.5/t) w-o-w. Today, trade activity remained limited amid the upward revision in offers. Buyers showed limited interest in fresh bookings, as many had already secured material at lower prices in the previous sessions. This cautious buying approach persisted, reflecting resistance to higher prices.
• Billet prices climb up d-o-d: BigMint’s billet index increased by INR 200/t ($2.5/t) d-o-d, settling at INR 35,100/t ($387/t) exw-Raipur on 11 November. Prices fell by INR 200/t ($2.5/t) w-o-w. Market activity remained limited today, as buyers had already made adequate bookings in previous sessions at favourable prices. Buyers remained cautious, waiting for adequate support to emerge from the finished steel segment.

Outlook

Pellet prices in Raipur are expected to remain range-bound in the near term, with limited trading activity likely to continue in the near term.