- Multiple sellers held back from offering material
- Mixed sentiment persists as tight supply caps downside
PELLEX, BigMint’s bi-weekly domestic pellet (Fe 63%) index for Raipur, remained firm at INR 10,200/t ($107/t) DAP on 7 August 2026 against its previous assessment on 4 August, supported by constrained supply by local pellet sellers followed by cautious procurement.
Pellet prices in Raipur remained firm, with producers maintaining offer levels amid constrained spot supply and healthy order book positions. While buyers continued to procure cautiously at the prevailing prices, limited availability prevented any downward pressure on the market, resulting in thin trading activity and stable price levels.
Rationale
- PELLEX has been derived using data points, i.e., trades, offers, and bids. To download the detailed methodology, click here.
- Zero (0) deals were recorded in this publishing window. Thus, the T1 trade category was accorded 0% weightage.
- Sixteen (16) firm offers, bids, and indicative prices were heard, of which fourteen (14) were taken for price calculation and given the balance 100% weightage.
Price movements and offers
Pellet manufacturers in Raipur, Chhattisgarh, kept offers firm for Fe 62.5/63% (0.5%) grade pellets at INR 10,000-10,200/t ($105-107/t) exw.
No major deal of pellets Fe 62.5/63% were heard being reported to BigMint from Raipur-based sellers amid multiple pre-booked deals pending for this week.
Market scenario
The Raipur pellet market remained firm during the assessment period, as tight spot availability continued to outweigh cautious buying sentiment. While buyers turned selective following the recent run-up in prices, limited material in the spot market allowed sellers to hold offers steady.
Market participants said a few pellet producers deliberately held back spot sales, anticipating that prices could remain supported. As a result, availability stayed tight even though buying was largely requirement-based. Buyers attempted to negotiate lower prices, but market sources said even INR 100-200/t discounts were difficult to secure. Offers in the range of INR 10,000-10,100/t ex-works were still viewed as unworkable by many sponge iron producers, resulting in thin negotiations.
A Raipur-based trader said, “Buyers are definitely cautious at these price levels, but there isn’t much material available either. Some sellers are not in a hurry to sell and are waiting for better realisations. Even deals at INR 10,000-10,100/t ex-works are being rejected by a few buyers, but the shortage of spot supply is keeping prices firm.”
Despite the pricing resistance, sellers continued to enjoy the upper hand as restricted availability outweighed weak buying interest. Most transactions were concluded only to meet immediate production requirements.
Another Raipur-based participant said, “As long as pellet-based sponge iron prices remain active and the downstream market stays volatile, the monsoon won’t have much impact on demand. Mills will continue buying whenever required, so overall market activity should remain healthy.”
Market participants expect the pellet market to remain firm but balanced in the near term. While buyers are likely to stay cautious at elevated price levels, tight spot availability is expected to keep prices supported. Any improvement in supply may increase trading activity, but is unlikely to create excess availability in the immediate future.
Key market drivers
- Sponge iron prices edged up w-o-w: Sponge PDRI prices rose by INR 100/t w-o-w to INR 25,350/t ($267/t) exw Raipur on 7 August. Many buyers were reluctant to accept the revised offer levels, as several had already secured sufficient material in earlier trades. Consequently, market activity was largely limited to enquiries and need-based purchases, while bulk transactions remained scarce. Buyers largely maintained a wait-and-watch approach amid the higher offer levels. In the PDRI segment, prices declined by INR 50-400/t, with the sharpest correction of INR 400/t recorded in Raigarh, where sellers reduced offers to improve sales.
- Billet prices stable w-o-w: BigMint’s billet index in Raipur remained largely rangebound w-o-w at INR 38,400/t ($404/t) exw on 7 August. However, billet index declined by INR 200/t day-on-day, as weak buying interest and bearish sentiment across neighbouring markets continued to weigh on the semi-finished steel segment. Although lower billet offers encouraged selective bookings, overall market activity remained subdued due to weak downstream demand.
Outlook
BigMint expects Raipur pellet prices to trade with a firm-to-stable bias in the near term. While monsoon-driven procurement and strength in sponge iron and semi-finished steel markets are likely to support prices, cautious buying and resistance to higher offers could keep market sentiment mixed. However, material availability may improve as a couple of plants are expected to supply fresh sales at the latter part of next week.
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