India: PELLEX remains firm after NMDC’s price announcement

• Raipur sellers keep offers stable amid moderate sales
• Market awaits OMC’s iron ore auction outcome

Pellet prices in Raipur remained firm over the last couple of days, with a few trades reported by Raipur-based producers to both local and outstation buyers at prevailing offers. Market participants indicated that price stability followed a week of supportive sentiment in the sponge iron and semi-finished steel markets where prices had witnessed an improvement of around INR 700/t (8/t).

Price movements, trades

PELLEX, BigMint’s bi-weekly domestic pellet (Fe63%) index for Raipur, remained stable at INR 9,700/t ($110/t) DAP on 18 November 2025 compared to the previous assessment on 14 November. Deals for around 18,000 t were concluded by buyers from local sellers.

Raipur-based pellet producers kept their offers for 63% (+/-0.5%) material stable at INR 9,600-9,800/t ($108-112/t) exw recently. Meanwhile, one prominent plant kept pellet sales closed. Some Odisha-based pellet sellers offered the material in Raipur at INR 9,600-10,000/t DAP.

NMDC has revised its list prices of iron ore CLO (calibrated lump ore) and announced fines prices on 15 November, BigMint learnt from sources. The miner has fixed prices of DR CLO (10-40 mm, Fe 67%) at INR 6,250/tonne (t) ($71/t) and of iron ore fines (-10 mm, Fe 64%) at INR 4,750/t ($54/t). Prices are on FOR basis from the miner’s Bacheli complex and include royalty, DMF, and NMEDT. DR CLO prices have been increased by INR 50/t while fines tags have been kept unchanged. Notably, the miner had last revised prices on 22 October.

Market scenario

However, the mood shifted today as both sponge iron and billet prices recorded a decline, making buyers more cautious about pellet procurement. A market participant remarked, “The sudden dip in sponge and billet prices pulled back fresh buying today. However, last week sellers concluded bulk volume of pellet sales in market. Most buyers prefer to wait before committing to new pellet bookings.”

Buying interest also slowed this week as many buyers had already secured adequate pellet volumes in the previous week amid the correction in offers and support from downstream steel tags. As a result, enquiries for fresh bookings weakened, and trading activity remained subdued.

A pellet supplier said, “We are getting limited inquiries for the pellets now, while we are keeping the same offers. The market is expecting the improvement in the next couple of days post OMC auction.”

Meanwhile, steel players are closely watching the upcoming OMC iron ore auction scheduled for tomorrow, which is expected to shape near-term sentiment in the pellet and raw material markets. This comes at a time when NMDC Chhattisgarh has rolled over its November delivery prices, providing some stability in upstream costs.

A sponge producer said, “Everyone is waiting to see the auction bidding dynamics. That will give direction for next week’s pellet pricing.” Notably, OMC reduced lump base prices by INR 200/t m-o-m.

Rationale

• PELLEX has been derived using data points, i.e., trades, offers, and bids. To download the detailed methodology, click here.
• Two deals were reported in this publishing window, and one (1) was taken for calculation. Thus, the T1 trade category was accorded 50% weightage.
• Sixteen (16) 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 rises w-o-w: Sponge iron prices exhibited an uptrend on 14 November 2025, with prices rising by INR 700/t ($8/t) d-o-d to INR 23,750/t ($268/t) exw-Raipur. Moreover, prices decreased by INR 150/t ($2/t) w-o-w. The overall market tone remained weak as trading interest was limited and demand stayed subdued. The only exception was the southern region, where prices held steady.
• Billet prices edge up w-o-w: BigMint’s billet index increased by INR 700/t ($8/t) d-o-d, settling at INR 35,800/t ($404/t) exw-Raipur on 14 November. Prices fell by INR 100/t ($1/t) w-o-w. Despite reduced offers, buying interest stayed subdued, weighed down by muted demand in finished steel in the couple of days which led buyers hold cautious position awaiting improvement in offtake before proceeding fresh bookings in semi-finished steel. Weak cues from neighbouring markets and continued pressure from the finished steel segment also contributed to the downward momentum, keeping overall sentiment bearish today.

Outlook

Pellet prices in Raipur are expected to remain rangebound in the near term, with clearer trends likely to emerge next week once the auction outcomes and market response unfold.