- Uncertainty around current prices keeps trade muted
- Market waits for stability in downstream steel prices
Pellet prices in the Raipur market remained largely stable during the week, although trading activity was muted due to a cautious stance adopted by buyers. Market participants indicated that, despite unchanged offers from suppliers, buyers are reluctant to conclude deals at the prevailing prices.
Trade and price movements
PELLEX, BigMint’s bi-weekly domestic pellet (Fe63%) index for Raipur, remained unchanged at INR 9,800/t ($107/t) DAP on 27 January 2026 compared to the previous assessment on 23 January. A deal for around 20,000 t of low-phosphorus pellets (Fe 62.5%) was concluded by a local pellet supplier at INR 9,700/t exw. Meanwhile, other plants failed to conclude deals in this publishing window.
Raipur-based pellet producers kept offers for Fe 62.5-63% (+/-0.5) grade pellets stable at INR 9,600-9,700/t ($105-106/t) exw.
Meanwhile, some Odisha-based sellers offered material at higher levels of INR 10,100-10,300/t ($110-112/t) DAP in Raipur.
Market scenario
According to suppliers, pellet offers were kept stable for several sessions; however, buying interest remained weak. A local pellet producer said, “We are keeping our prices steady, but inquiries are very limited. Buyers are not ready to buy at this level.”
Another supplier echoed this sentiment, noting that most buyers adopted a wait-and-watch approach amid uncertain market conditions.
Buyers, on the other hand, pointed to instability in downstream steel prices as the primary reason for holding back purchases. A sponge iron manufacturer informed BigMint, “There is still no clear direction in sponge iron and billet prices. Until we see stability downstream, it is difficult to take fresh raw material positions.” Several buyers added that expectations of a possible price correction in local Raipur pellet offers also kept them on the sidelines.
Meanwhile, pellet material sourced from Odisha was not considered viable for Raipur-based buyers due to higher landed costs, further limiting procurement options. A trader added, “Odisha pellets are not workable for us right now, so we are depending on local availability or waiting for revised offers.”
Some buyers also highlighted that adequate inventory levels are reducing the urgency to purchase pellets. A buyer noted, “We are comfortably stocked and are managing part of our requirement through iron ore lumps, so there is no immediate pressure to buy pellets.” As a result, only limited pockets of trading activity were observed, mostly driven by immediate or plant-specific requirements.
Market participants expect trading activity to improve once sellers announce fresh offers or revise prices in line with market expectations.
Rationale
- PELLEX has been derived using data points, i.e., trades, offers, and bids. To download the detailed methodology, click here.
- One (1) deal was recorded in this publishing window, so this category was 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 100% weightage.
Key market drivers
- Sponge iron prices rise w-o-w: Sponge iron prices surged by INR 200/t ($2/t) w-o-w on 27 January to INR 25,200/t ($276/t) exw-Raipur. Furthermore, prices rose by INR 50/t ($0.5/t) d-o-d. Enquiries in the finished steel segment remained limited, while the semi-finished steel market continued to witness moderate interest. As per the current market scenario, prices are expected to remain at around current levels. Notably, buying activity observed today was largely driven by post-holiday restocking following Vasant Panchami and the long weekend, with purchases mostly confined to need-based requirements.
- Billet prices drop w-o-w: BigMint’s billet index increased by INR 200/t ($2/t) w-o-w to INR 40,650/t ($444/t) exw-Raipur on 27 January. Meanwhile, prices decreased by INR 350/t ($4/t) d-o-d. Trading activity remained limited, with buyers holding back larger bookings amid sluggish finished steel offtake and subdued enquiries. Market participants said buying was largely need-based, as uncertainty over near-term price direction kept sentiment cautious.
Outlook
Pellet prices in Raipur are likely to remain volatile, with actual trades still under question amid weak demand and cautious market sentiment.
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