India: PELLEX holds firm with healthy deals and aggressive buying

• Decent bookings and cautious buying support market activity
• Firm steel and higher raw-material costs keep sentiment bullish

PELLEX, BigMint’s bi-weekly domestic pellet (Fe 63% +/- 0.5%)  for Raipur remained stable at INR 11,000/t DAP Raipur on 11 September 2026 against 8 September. During the current assessment period. However, the overall market sentiment continued to remain strongly bullish, with sellers largely unwilling to negotiate on their offers.

The firm sentiment has primarily been supported by higher raw-material costs, particularly coal, which have kept sponge iron and semi-finished steel prices firm over the past couple of days. The downstream steel market, especially the billet segment, has provided significant support to the current pellet price levels. Similar positive sentiment has also been observed across Central and Southern India.

Rationale

• PELLEX has been derived using data points, i.e., trades, offers, and bids. To download the detailed methodology, click here.
• Five (5) deals were recorded in this publishing window, of which only four (4) was taken for calculation. Thus, the T1 trade category was accorded a weightage of 50%.
• Fourteen (14) firm offers, bids, and indicative prices were heard, of which ten (12) 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 no inclination to reduce offers, with the market continuing to receive support from firm sponge iron and billet prices. Market participants reported selective transactions at higher price levels in neighbouring markets, further strengthening sellers’ confidence.

Around 87,000 t of pellet deals were reported during the assessment period, indicating continued procurement interest from consumers. The healthy transaction volume indicates aggressive procurement interest, with buyers increasingly looking to secure material amid expectations of another possible increase in pellet offers.

Market scenario

A trader noted that “the recent rally across the ferrous value chain has been largely supported by the raw-material segment. Firm coal, pellets, iron ore lumps and fines have improved margins for raw-material suppliers, while margins remain comparatively thinner for sponge iron and billet producers. Finished steel prices, meanwhile, remain closer to breakeven levels.”

Procurement remained cautious, but buying interest was healthy as consumers continued to secure material amid tight raw-material availability and firm downstream prices. Some buyers were seen booking proactively to hedge against the possibility of another INR 200/t increase in pellet offers.

Market participants said prevailing pellet prices are being reasonably accepted by buyers, although procurement remains largely need-based. Buyers are showing some willingness to accommodate firm offers as replacement costs remain elevated.

Sellers in neighbouring markets also maintained a firm stance. Producers and traders in Chandrapur and Durgapur were heard to have revised offers marginally upwards, reflecting the positive sentiment prevailing across regional pellet markets.

Bookings with major Raipur-based sellers remained healthy during the assessment period, with buyers continuing to secure material despite elevated prices. Some consumers have also preferred to book in advance amid expectations of further firmness, keeping transaction activity steady.

Meanwhile, some local buyers indicated that pellet offers from Jharsuguda are currently competitive compared with local material. A few buyers have consequently started booking small quantities from the region on a trial basis.

Key market drivers

• Sponge iron prices gain w-o-w: Sponge PDRI prices stood at INR 29,300/t ($307/t) exw Raipur on 11 September against 4 September. Prices remained steady on a d-o-d basis. The rise in finished steel prices, coupled with higher raw material costs, has created cost-push pressure in the market and encouraged sellers to maintain firm offers. However, trade momentum remained slow at higher price levels, with buyers adopting a cautious approach. Most participants continued to procure only according to immediate requirements, limiting overall trading activity.
• Billet prices inch higher w-o-w: BigMint’s billet index in Raipur rose by INR 1,600-1,700/t to INR 43,550/t ($456/t) exw on 11 September 2026 against 4 September. Market participants continued to monitor whether the recent price gains can be sustained, as the finished steel segment has yet to gain stronger buying support. Limited fresh bookings also reduced the scope for further movement in billet prices during the session.

Outlook

BigMint suggests, the Raipur pellet market is expected to remain firm in the near term, supported by healthy bookings, firm billet and sponge iron prices, and elevated raw-material costs. While buyers remain cautious at current price levels, the possibility of further offer increases is encouraging need-based and proactive procurement.