- Raipur pellet prices remain steady, amid buyer cautiousness
- Selective procurement and firm costs keep market sentiment supported
PELLEX, BigMint’s bi-weekly domestic pellet (Fe 63%) index for Raipur remained stable at INR 11,000/t DAP Raipur on 4th September 2026. Prices held steady after the sharp increase recorded in the previous assessment, supported by firm pellet prices across major domestic markets and relatively strong sponge iron, pig iron and billet prices.
Pellet offers in Raipur also remained largely unchanged, with local sellers quoting around INR 10,800-10,900/t ($113-114/t) ex-works. However, fresh buying activity was moderate, with buyers remaining cautious at current price levels. Most buyers were reportedly targeting below prevailing seller expectations, as they waited for more attractive levels before making fresh purchases.
Rationale
- PELLEX has been derived using data points, i.e., trades, offers, and bids. To download the detailed methodology, click here.
- Three (3) deals were recorded in this publishing window, and was taken for calculation. Thus, the T1 trade category was accorded a weightage of 50%.
- Seven (7) firm offers, bids, and indicative prices were heard, of which five (5) 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 after increasing prices by around INR 200/t in the previous assessment.
Around 25,000 t of pellet deals were reported to BigMint during the assessment period. While trading activity remained reasonably at moderate levels, inquiries were somewhat softer as buyers became more selective following the sharp rise in prices over the past few weeks.
Market scenario
A market participant informed BigMint that sellers had already sold around 60-70% of their intended quantities at elevated prices. As a result, buyers have become more selective, with several participants preferring to wait for a correction before making fresh bookings.
The earlier support from sponge iron and billet prices has also started to ease, although the correction in these markets remains limited. Firm finished steel prices, particularly rebar and TMT, continue to provide support to the broader ferrous market and have helped prevent a sharper correction in pellet prices.
A Raipur-based seller told BigMint that trading activity remained reasonably healthy to moderate levels despite the cautious buying sentiment. Similar trends were observed across eastern, central and western markets, where inquiries continued but buyers remained reluctant to make aggressive purchases at prevailing price levels.
Meanwhile,with the prices remaining firm in markets such as Barbil, suppliers have limited incentive to divert material into Raipur unless buyers are willing to match prevailing levels. This has helped local producers maintain their offers.
Monsoon-related constraints on iron ore lump availability, along with moisture-related handling issues, have continued to keep raw material costs elevated. However, with producers having already covered a significant portion of their intended sales, aggressive selling pressure remains limited.
Key market drivers
- Sponge iron prices remained stable w-o-w: Sponge PDRI prices stood flat at INR 29,000/t ($307/t) exw Raipur on 4 September against 27 September. Prices declined by INR 50/t on a d-o-d basis. Overall market sentiment remained positive today, although trading activity was relatively slow. Buyers showed limited interest at higher price levels, with enquiries remaining weak. Demand for finished steel also remained subdued, restricting support for sponge iron demand. Heavy rainfall and the ongoing monsoon season have further affected finished steel consumption and kept buyers cautious.
- Billet prices increase w-o-w: BigMint’s billet index in Raipur rose by INR 200/t to INR 41,900/t ($443/t) exw on 4 September 2026 against 27 September. Market slight weakened today, cracking down INR 250/t d-o-d. Market activity remained slow amid the festive holiday, weak demand and lower participation across the semi-finished steel segment. Despite reduced offers, buying interest remained subdued as weak finished steel demand over the past couple of days prompted buyers to remain cautious. Most participants preferred to await an improvement in downstream offtake before making fresh bookings.
Outlook
Raipur pellet prices are expected to remain broadly supported in the near term, backed by firm finished steel prices and relatively high raw material costs. At the same seller also booked sufficient material. A mild softening cannot be ruled out if downstream demand weakens further. However, a sharp correction appears unlikely in the immediate term.
Leave a Reply