India: PELLEX holds firm amid supportive ferrous market sentiment

• Firm billet market prices restrict near-term correction in pellet
• Limited selling pressure and inflows underpin market sentiment

PELLEX, BigMint’s bi-weekly domestic pellet (Fe 63%) index for Raipur remained stable at INR 11,000/t DAP Raipur on 8 September 2026 against 4 September. Prices continued to hold firm, supported by strength in the sponge iron and semi-finished steel segments. Major pellet sellers largely maintained their offers at around INR 10,800-10,900/t ($114-115/t) ex-works.

Overall downstream steel support majorly arising from billet, thus market is at better position for pellets.

Rationale

• PELLEX has been derived using data points, i.e., trades, offers, and bids. To download the detailed methodology, click here.
• Two (2) deals were recorded in this publishing window, of which only one (1) was taken for calculation. Thus, the T1 trade category was accorded a weightage of 50%.
• Thirteen (13) firm offers, bids, and indicative prices were heard, of which ten (10) were taken for price calculation and given the balance 50% weightage.

Price movements and offers

Major pellet manufacturers in Chhattisgarh largely maintained their offers for Fe 62.5/63% (+/-0.5%) grade pellets in-line with the previous assessment. Sellers showed limited inclination to reduce offers, with the market continuing to receive support from firm sponge iron and billet prices.

Around 13,000-15,000 t of pellet deals were reported during the assessment period, indicating continued procurement interest from consumers. While buyers remained selective, market activity was supported by ongoing requirements and the need for replenishment among some consumers.

Market scenario

Market participants indicated that the current pellet market continued to receive good support from the sponge iron and billet segments. Sellers remained comfortable with prevailing price levels, with no significant selling pressure reported in the market.

A Raipur based pelletmaker told BigMint that firm sponge iron and billet prices were providing support to pellet offers, while sellers were under limited pressure to liquidate material. As a result, major producers continued to hold their offers largely unchanged. However, some softness in sponge iron definitely capped any aggressive upward push in pellet prices in Raipur.

The recent increase in rebar prices across several major Indian markets has also improved sentiment in the semi-finished and finished steel segments. The firmer downstream market has strengthened producers’ confidence in maintaining current pellet offers.

Meanwhile, rising thermal coal prices have increased sponge iron production costs, providing additional support to the broader cost structure. With downstream steel prices remaining firm, the cost-side pressure has helped underpin sentiment across the ferrous raw material chain.

On the buying side, procurement remained selective, with consumers largely purchasing according to immediate requirements. However, some buyers were heard to have drawn down their inventories and were looking for fresh material, which could support replenishment demand in the coming period.

A pellet buyer told BigMint that procurement was being managed according to requirements, with buying likely to increase as inventory positions tighten. This indicates that while buyers are not aggressively building stocks, underlying consumption requirements remain intact.

Limited inflows from neighbouring markets into Raipur were also reported during the assessment window. With alternative supplies remaining relatively constrained, local buyers had fewer opportunities to source material at significantly lower levels. This provided additional support to local pellet offers.

Overall, the Raipur pellet market sentiment remained stable to firm, supported by healthy sponge iron and semi-finished steel prices, higher downstream rebar prices and rising production costs. Limited selling pressure and restricted inflows into the region are expected to keep pellet prices broadly supported, while buying is likely to remain need-based in the near term.

Key market drivers

• Sponge iron prices decline w-o-w: Sponge PDRI prices stood at INR 28,650/t ($303/t) exw Raipur on 8 September against 1 September. Prices declined by INR 700/t on a w-o-w basis. The increase was largely supported by late-evening buying activity in the previous session, which provided a boost to market sentiment. Market participants reported that sellers were raising offers following the good demand witnessed during the previous evening, particularly in the central region. However, buying activity in finished steel remained slow today, with no major transactions reported.
• Billet prices increase w-o-w: BigMint’s billet index in Raipur rose by INR 600/t to INR 42,700/t ($452/t) exw on 8 September 2026 against 1 September. Market prices grew, supported by improved demand for semi-finished steel and stronger buying interest from neighbouring markets, particularly Maharashtra and Gujarat. Trading activity also increased as markets resumed after holidays, while expectations of further price gains encouraged buyers to step up for bookings. Participation improved during the session, with enquiries increasing across nearby markets. Buyers moved to secure material amid expectations of higher prices, resulting in stronger bookings at prevailing levels.

Outlook

Raipur pellet prices are expected to remain broadly firm in the near term, supported by stable sponge iron and semi-finished steel prices, along with limited selling pressure from pellet producers.