- Maintenance shutdowns limit spot volumes
- Sponge iron, billet markets stay supported
PELLEX, BigMint’s bi-weekly domestic pellet (Fe 63%) index for Raipur, held firm at INR 10,100/t ($106/t) DAP on 28 July 2026 against 24 July, supported by limited spot availability and fresh deals in the market.
Pellet prices in Raipur continued to strengthen as producers kept offers intact, reflecting persistent supply tightness and healthy downstream demand. While buyers remained selective at the revised offer levels, trades continued to materialise as limited pellet availability kept the market undersupplied.
Rationale
- PELLEX has been derived using data points, i.e., trades, offers, and bids. To download the detailed methodology, click here.
- Three (3) deals were recorded in this publishing window, and thus, one (1) was taken for calculation. Thus, the T1 trade category was accorded 50% weightage.
- Thirteen (13) firm offers, bids, and indicative prices were heard, and twelve (12) were taken for price calculation and given the balance 50% weightage.
Price movements and offers
Pellet manufacturers in Raipur, Chhattisgarh, kept offers firm for Fe 62.5/63% (0.5%) grade pellets at INR 9,900-10,000/t ($103-104/t) exw. This marks the fourth hike during July (till date) from Raipur-based pellet makers. Cumulatively, offers have been increased by INR 1,000/t.
Deals for nearly 41,000 t pellets Fe 62.5/63% were concluded largely at INR 9,700-10,000/t DAP from Odisha-based sellers, indicating that buyers continued to procure material despite elevated prices, supported by limited availability. Another 10,000 t deals for Fe 63% pellet by local producers at INR 10,000/t exw was reported.
Market scenario
The Raipur pellet market remained firm, primarily due to tight spot availability. Several pellet manufacturers were under maintenance, while others continued dispatching material booked earlier, leaving very limited quantities available for fresh sales. The resulting supply shortage allowed producers to maintain higher offers despite buyers remaining price-conscious.
A Raipur-based pellet producer informed BigMint: “Most pellet plants are either under maintenance or fulfilling earlier commitments. Spot availability is very limited, which has enabled producers to keep raising offers.”
The shortage has also attracted supplies from neighbouring regions, with several Odisha- and Raigarh-based sellers diverting cargoes to Raipur to capitalise on stronger prices and better demand.
Despite the higher offers, trading activity remained healthy, as buyers continued to secure material amid limited availability. Market participants noted that pellets were being lifted quickly whenever offered, reflecting the prevailing supply deficit.
A Raipur-based buyer said: Pellet availability is scarce, so material is getting sold almost immediately. The shortage has accelerated offtake and has also supported sponge iron prices in Raipur, as DRI producers continue competing for limited pellet supplies.”
The firm pellet market also found support from improving downstream fundamentals. Healthy bookings in sponge iron and billet kept mills active in the market, while the ongoing monsoon continued to favour pellet consumption over iron ore lumps due to pellets’ consistent quality and lower moisture content.
Overall, tight supply, healthy offtake, and improving downstream steel sentiment kept the Raipur pellet market firmly supported during the assessment period. However, multiple pellet sellers from neighbouring market highlighted that the uptrend witnessed in the semi-finished segment might not last and therefore pressure can again build on pellet producers.
Key market drivers
- Sponge iron prices rise w-o-w: Sponge PDRI prices increased by INR 650/t ($7/t) w-o-w to INR 25,500/t ($266/t) exw Raipur on 28 July. However, sponge iron prices in Raipur lowered by INR 100/t d-o-d. Market activity remained muted as both buyers and sellers had already secured adequate material in recent sessions, resulting in limited fresh enquiries. Despite weak demand, most sellers refrained from offering steeper discounts because they had already sold sufficient volumes and are currently focused on dispatching existing orders.
- Billet prices increase w-o-w: BigMint’s billet index in Raipur rose by INR 1050/t ($11/t) w-o-w to INR 38,950/t ($407/t) exw on 28 July. BigMint’s billet index extended its upward trend this week, rising, as strong buying interest and supportive sentiment across neighbouring markets drove another sharp increase in spot prices. Producers raised offers, and the positive sentiment prevailing across northern and central India encouraged buyers to conclude bookings across a range of price levels.
Outlook
BigMint expects Raipur pellet prices to remain firm in the near term, supported by some more deals expected to conclude in the next few days. However, buyer refrained from setting a clear expectation on prices as more deals from Odisha market are likely to weigh on prices.
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