- Pellet sellers raise offers by INR 200-300/t amid firm market sentiment
- Buyers resist procuring at current prices, explore alternative options
PELLEX, BigMint’s bi-weekly domestic pellet (Fe 63% +/- 0.5%) index for Raipur rose to INR 11,250/t DAP Raipur on 15 September 2026 from INR 11,000/t on 11 September.
The increase was driven by firmer market sentiment, with sellers raising offers by around INR 200-300/t to INR 11,000-11,100/t. Firm sponge iron and billet prices, higher raw-material costs, and stronger steel realisations supported the bullish sentiment.
Buyers remained selective, focusing on immediate requirements and seeking alternative sources or discounts. However, firm costs and positive sentiment across central and eastern India kept sellers confident in holding higher offers.
Rationale
- PELLEX has been derived using data points, i.e., trades, offers, and bids. To download the detailed methodology, click here.
- One (1) deal of 4,000 t was recorded in this publishing window and 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.
Market scenario
The market remained firmly seller-driven, with producers maintaining a strong pricing stance despite subdued spot buying. Firm coal, iron ore lumps and fines, along with elevated sponge iron and billet prices, have kept replacement costs high and provided continued support to pellet prices.
With pellet prices reaching relatively high levels, many buyers are now exploring alternative sourcing options and seeking whatever discounts are available in the current market to optimise procurement costs. Instead of committing to large volumes at prevailing levels, consumers are assessing different origins and suppliers in search of comparatively favourable replacement prices, a Bilaspur-based buyer informed BigMint.
A similar strategy was also observed in eastern Indian markets, where buyers have explored alternative sourcing opportunities and benefited from available price differentials. The development highlights continued procurement interest, although buyers remain highly price-sensitive at current elevated pellet levels.
Market participants indicated that buyers are increasingly looking for any possible cool-off in prices to build larger volumes. While immediate requirements continue to be covered, consumers are reluctant to aggressively chase the market at current levels and are waiting for more favourable procurement opportunities.
Billet prices remained on a positive trend, providing support to the pellet market and maintaining a firm underlying tone across the ferrous value chain. However, traders indicated that actual trading activity in both finished and semi-finished steel remained largely absent. The lack of active trade has kept buyers cautious and limited their willingness to absorb further cost increases.
Despite this, sellers continue to draw support from the elevated cost structure. Market participants noted that any sustained strength in sponge iron, billet and raw-material prices would continue to provide a floor to pellet prices, even as buyers remain selective in their procurement.
Procurement from major Raipur-based sellers remained largely requirement-driven during the assessment period. Buyers continued to monitor offers closely, while sellers showed limited inclination to offer substantial discounts given the prevailing replacement-cost structure.
Pellet offers from neighbouring markets, particularly on the eastern side, also remained firm. Sellers in these markets have benefited from the broader positive price environment, while buyers continue to compare alternative origins to secure material at competitive levels.
Key market drivers
- Sponge iron prices gain w-o-w: Sponge PDRI prices stood at INR 29,450/t ($307/t) exw Raipur, up by INR 800/t w-o-w on 15 September against 8 September. Prices edged down on a d-o-d basis. Overall market sentiment remained positive today, with sellers raising prices amid improved finished steel demand. This positive sentiment pushed the sponge iron market towards an upward price trend, with finished steel prices also rising by Rs 200-1,000/t today. However, at higher rates, buyers turned slightly cautious, though a moderate level of buying interest was observed.
- Billet prices inch higher w-o-w: BigMint’s billet index in Raipur rose by INR 1,700/t ($18/t) to INR 44,400/t ($463/t) exw on 15 September 2026 against 8 September. Market participation improved during the session, with enquiries increasing across markets. Buyers stepped up procurement amid expectations of further price gains, resulting in improved bookings at prevailing levels. Market participants indicated that billet manufacturers were operating currently at around 60% of production levels approximately, resulting in limiting spot availability.
Outlook
BigMint expects the Raipur pellet market to remain firm in the near term, supported by elevated raw-material costs and a positive trend in sponge iron and billet prices. However, with pellet prices already at high levels and buying interest subdued, buyers are likely to continue exploring alternative sources and waiting for any cool-off opportunity to procure larger volumes at comparatively favourable prices. Market firmness will remain subject to acceptance from the semi-finished steel market.
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