- Pellet offers remain unchanged in Raipur
- Sponge iron and billet prices under pressure
Pellet prices in Raipur remained largely stable this week, with trading activity restricted to need-based requirements from steelmakers. Producers maintained their offers at the same levels as last week, while inquiries continued to surface only from buyers covering immediate consumption needs.
Price movements, trades
PELLEX, BigMint’s bi-weekly domestic pellet (Fe63%) index for Raipur, remained stable at INR 10,300/t ($116/t) DAP on 26 September 2025 compared to the previous assessment on 22 September. Deals for around 10,000 t were recorded in the Raipur market in the last couple of days, concluded by local pellet suppliers.
Raipur-based pellet producers kept their offers for Fe 63/63.5% (+/-0.5%) material stable at INR 10,200-10,500/t ($115-118/t) exw recently. Meanwhile, a few plants hiked their offers with no deals.
Some Odisha-based suppliers offered pellets at INR 10,000-10,400/t ($113-117/t) DAP Raipur, but buyers remained cautious and deals were absent.
Market scenario
According to sources, sponge iron and billet prices were under pressure, which restricted buying though most buyers stayed cautious about committing to bulk volumes. A seller said, “Sponge iron and billet prices have been volatile, which is giving rise to cautious sentiments in the market.”
Sources said that sentiment in the pellet market is being weighed down by expectations of a price correction in the near term. A market participant informed, “Most buyers are holding back bulk purchases because they expect a downward revision in pellet prices next week. However, iron ore prices are still higher in the market, which may give resistance in pellet prices in the near term on the downtrend revision.”
At NMDC’s auction for 61,900 t of iron ore from its Bacheli mines on 25 September, 12,900 t of DR CLO (Fe 67%) fetched 19% premium (base INR 6,910/t), while out of 6,000 t offered, 4,000 t ROM (Fe 65.5%) was booked at base price of INR 6,050/t. However, 43,000 t of fines (Fe 64%) remained unsold with the base price of INR 5,290/t. Prices were FOR basis plus royalty, DMF, and NMEDT.
A sponge iron manufacturer remarked, “We are procuring only as per our daily needs. With expectations of price adjustments, there is no urgency to build inventory. The market is in a wait-and-watch mode, and clarity is expected once fresh price corrections set in.”
Rationale
- PELLEX has been derived using data points, i.e., trades, offers, and bids. To download the detailed methodology, click here.
- One (1) deal was reported in this publishing window and was not taken for calculation. Thus, the T1 trade category was accorded 0% weightage.
- Seventeen (17) firm offers, bids, and indicative prices were heard. Thirteen (13) were taken for price calculation and given a balance of 50% weightage.
Key market drivers
- Sponge iron tags rise w-o-w: P-DRI prices remained stable w-o-w at INR 24,500/t ($276/t) exw-Raipur on 26 September while inching down INR 100/t ($1/t) d-o-d. Muted activity in the downstream steel sector compelled sellers to trim offers to trigger limited demand. However, buyers stayed on the sidelines, restricting procurement to immediate requirements. Sparse enquiries further highlighted cautious purchasing behavior, with uncertainty looming over near-term price trends.
- Billet prices up w-o-w: Billet prices in Raipur decreased by INR 350/t ($4/t) w-o-w to INR 36,600/t ($413/t) exw today. Prices fell by INR 100/t ($1/t) d-o-d. Despite softer offers, buying activity remained weak, weighed down by subdued downstream demand and reduced participation ahead of the festive season. Market activity was confined to need-based procurement, with only a few spot deals reported.
Outlook
Price volatility is likely to continue in the near term. This is due to fluctuating prices of sponge iron and billets, along with the influence of iron ore price movements in Odisha.
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