India: PELLEX remained stable amid muted trades with old deals to dispatch

• Buyers are cautious for fresh pellet deals
• Sponge iron, semi finished remain under pressure w-o-w

PELLEX, BigMint’s bi-weekly domestic pellet (Fe 63%) index for Raipur,remained stable at INR 9,100/t ($96/t) DAP on 26 June against 23  June.

Pellet prices in the Raipur market remained stable during the mid-week assessment as trading activity stayed subdued, with only a couple of deal pockets reported. Most suppliers are currently focused on dispatching material booked through bulk transactions concluded last week, while fresh buying interest has remained limited.

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 recorded in this publishing window and was taken for calculation. Thus, the T1 trade category was accorded 50% weightage.
• Fifteen (12) firm offers, bids, and indicative prices were heard, and ten (10) were taken for price calculation and given the balance 50% weightage.

Price movements and offers

Pellet makers in Raipur kept offers stable for Fe 62.5/63% (0.5%) grade at INR 8,900-9,000/t ($94-95/t) exw. Meanwhile, BigMint recorded around 5,000 t of deal during the current publishing window at INR 9,000/t exw Raipur.

Market scenario

According to market participants, buyers are exercising caution after securing sufficient raw material inventories in recent weeks. A buyer said, “Most consumers had already booked their requirements a couple of weeks ago and are now taking deliveries instead of entering the market at current price levels.” This has resulted in muted spot market activity despite stable offer prices.

On the supply side, a few pellet manufacturers have temporarily suspended fresh sales due to limited material availability. Sources indicated that several producers had concluded aggressive sales during the previous trading window, reducing their immediate inventory for fresh bookings. A  pellet producers informed, “Current inventories are tight, and suppliers are prioritizing pending dispatches over new commitments.”

Meanwhile, some buyers have shifted their procurement towards iron ore lumps sourced from Maharashtra, attracted by relatively competitive pricing. This has further reduced immediate demand for pellets in the Raipur market.

Downstream sentiment also remained cautious as sponge iron and semi-finished steel prices continued to face pressure, limiting purchase appetite across the value chain. Industry participants believe that weak finished steel margins are preventing buyers from building additional inventories.

Of the offered 234,500 t, around 32,100 t of iron ore were booked at NMDC’s auctions from its Bacheli and Kirandul mines on 25 Jun’26. From Bacheli, entire 21,500-t DRCLO (10-40 mm, Fe 67%) offered booked at INR 6,600/t (base price INR 6,400/t). 2,000-t of Baila-sized lumps (10-20 mm, Fe 65.5%) were sold at INR 5,800/t base price. However, 108,200-t fines (Fe 64%) remained unsold. Meanwhile in Kirandul, around 8,600-t ROM (10-150 mm, Fe 65.5%) were booked at a base price of INR 4,890/t FOR basis.

Key market drivers

• Sponge iron prices fall w-o-w: Sponge PDRI prices dropped by INR 150/t ($1.5/t) w-o-w t0 INR 24,000/t ($254/t) exw Raipur on 26 June. However, prices in Raipur inched down by INR 50/t  d-o-d. Producers reduced spot offers slightly to stimulate demand, resulting in a modest improvement in bookings during the session.
• Billet prices down w-o-w: BigMint’s billet index in Raipur inched down by INR 200/t ($2/t) w-o-w to INR 38,750/t ($410/t) exw on 26 June. Additionally, the index increased  by INR 50/t d-o-d. The index registered a marginal gain even as market sentiment remained largely stable, resulting in minor fluctuations in spot offers throughout the trading session. Moderate buying at varied price levels lent support to billet prices, although weak demand from the finished steel segment continued to cap any significant upside.

Outlook

Pellet prices are expected to remain firm in the coming days. This is primarily linked to the scheduled maintenance shutdown of a Raipur-based pellet producer, which is expected to temporarily alter regional supply dynamics and influence pricing strategies. However, participants added that the extent of any correction will largely depend on sponge iron demand, finished steel market recovery.