- Cautious optimism prevails amid need-based buying
- Semis, billet prices surge by INR 800-1,100/t w-o-w
Pellet prices in Raipur remained supported in recent days, with a few trades seen in neighbouring markets, as buying interest improved amid a recovery in sponge iron and billet prices. The recent hike in these segments provided much-needed support to pellet demand after a prolonged slowdown, though overall market sentiment remains cautious.
Price movements, trades
PELLEX, BigMint’s bi-weekly domestic pellet (Fe63%) index for Raipur, rose by INR 50/t to INR 10,000/t ($113/t) DAP on 4 November 2025 compared to the previous assessment on 31 October. No pellet deals have been concluded in Raipur so far this week.
Raipur-based pellet producers kept their offers for Fe 63 (+/-0.5%) material at INR 9,900/t ($112/t) exw levels.
Market scenario
A Raipur-based pellet supplier said, “We have started receiving steady inquiries from sponge iron producers since the middle of the week. Market sentiment improved slightly after the rise in downstream steel prices, but buyers are still assessing demand before making large purchases.”
Another buyer noted that participants remain cautious amid uncertainty in sponge iron and billet demand, which has created hesitation to place bulk orders. “Procurement is happening only as per immediate needs, as buyers are waiting for more clarity on price trends,” he added.
Another seller highlighted that while a few discussions are underway, several are yet to reach a conclusion from the buyers’ side, reflecting cautious market behaviour.
Overall, the Raipur pellet market remains stable, supported by improving sentiment in the steel value chain, though most participants continue to adopt a wait-and-watch approach amid fluctuating demand cues from the sponge iron and billet segments.
Rationale
- PELLEX has been derived using data points, i.e., trades, offers, and bids. To download the detailed methodology, click here.
- No deals were reported in this publishing window; and not taken for calculation. Thus, the T1 trade category was accorded 0% weightage.
- Fourteen (14) firm offers, bids, and indicative prices were heard. Ten (10) were taken for price calculation and given a balance of 100% weightage.
Key market drivers
- Sponge iron sees sharp hike w-o-w: India’s sponge iron market exhibited a firm upward movement on 4 November 2025, with prices up by INR 900-1,100/t w-o-w across major regions. The move was supported by improved trading momentum in the semi-finished and finished steel segments.
- Billet prices rise w-o-w: BigMint’s billet index rose sharply by INR 800-900/t w-o-w, settling at INR 35,300/t exw-Raipur on 4 November 2025, amid improved buying activity and stronger demand from neighbouring markets, which supported offers. Market sentiments remained volatile but positive, as rising finished steel prices and improved offtake in key consuming regions encouraged participants to step up bookings in semi-finished steel.
Outlook
Pellet prices are likely to stay steady with an upward market trend, as renewed buying interest and improving sentiment in the downstream steel market lend support.
Leave a Reply