India: PELLEX remains stable amid gathering trade momentum this week

• Sponge iron, billet prices rise by INR 900-1,200/t ($10-13/t) w-o-w
• Around 40,000 t of pellet deals concluded by Raipur buyers

Pellet prices in Raipur remained stable this week as trading activity continued at a moderate pace. Sellers maintained their offers, while buyers opted for need-based purchases from both local sellers as well as those in the neighbouring regions. The market sentiment was neutral, with support coming from the increase in sponge iron and billet prices, which encouraged trade in pellets.

BigMint’s bi-weekly domestic pellet (Fe63%) index remained stable at INR 10,100/t ($118/t) DAP Raipur on 25 March 2025 compared to the previous assessment on 21 March. In this publishing window, around 30,000 t of pellets (Fe63%) deals were concluded by Raipur-based producers at INR 9,850-10,200/t ($115-119/t) DAP Raipur from local suppliers. Meanwhile, around 10,000 t of Fe 62.5/63% material was booked at INR 9,400-9,700/t ($110-113/t) DAP Raipur a few days back from Odisha-based suppliers.

A Raipur-based trader said, “The market is witnessing stable prices, and inquiries are coming on a regular basis. This has kept trade volumes consistent even ahead of the financial year-end.”

With steady inquiries, sellers have been able to maintain price levels, contributing to a balanced market. Some trades were also seen from Odisha-based producers, adding to the overall transaction volumes.

Pellet offers in Raipur for Fe63% (+/- 0.5%) material were stable at INR 9,900-10,000/t ($116-117/t) exw. Odisha-based pellet producers offered (Fe 62.5%/63%) grade material in Raipur at INR 9,600-9,900/t ($110-116/t) DAP with some deals heard concluded.

Another market participant informed, “The recent rise in sponge iron and billet prices has given some confidence to pellet sellers. Buyers are purchasing as per their immediate requirements while avoiding bulk deals.”

As per sources, one of the key sellers in Raipur has kept their sales closed as they already have sold sufficient volumes over the past few days and are facilitating deliveries as part of deals done earlier.

Rationale

• PELLEX has been derived using data points, i.e., trades, offers, and bids. To download the detailed methodology, click here.
• Four (4) deals have been reported so far in this publishing window, and two (2) were taken for calculations. The T1 trade category was accorded 50% weightage.
• Seventeen (17) firm offers, bids, and indicative prices were heard. Fifteen (15) were taken for price calculation and given the balance 50% weightage.

Factors impacting pellet prices

• Sponge iron tags rise w-o-w: P-DRI prices rose by INR 900/t ($10/t) w-o-w to INR 26,300/t ($307/t) exw-Raipur on 25 March. However, prices inched down by INR 50/t ($0.5/t) d-o-d today. Trading activity subdued today amid weak buying sentiments in the region.
• Billet prices increase w-o-w: Billet prices in Raipur rose by INR 1,150/t ($13/t) w-o-w to INR 41,500/t ($484/t) exw today. However, d-o-d, prices dropped by INR 150/t ($2/t). The Raipur billet market remained silent in today’s trading session, which saw a reduction in total trade volumes compared to yesterday.

Outlook

According to BigMint, pellet prices are expected to remain stable for remaining days of this fiscal year. The pace of trade may slow down since most buyers have decent material stocked over the past few days.