- Lack of spot inquiries in market
- Sufficient inventories and drop in billet, sponge prices today keeps buyers wary
Pellet prices in Raipur remained stable this week, as assessed on 20 January 2026 as trading activity stayed limited on lack of buying interest from steelmakers. Market participants noted that overall sentiment continues to remain cautious, with buyers largely restricting their purchases to need-based deals rather than bulk procurements.
Trade and price movements
PELLEX, BigMint’s bi-weekly domestic pellet (Fe63%) index for Raipur, remained unchanged at INR 9,800/t ($108/t) DAP on Tuesday compared to the previous assessment on 16 January.
Raipur-based pellet producers kept offers for Fe 62.5-63% (+/-0.5) grade pellets stable at INR 9,600-9,700/t ($106-107/t) exw.
Meanwhile, some Odisha-based sellers offered material at higher levels of INR 9,900-10,400/t ($109-114/t) DAP in Raipur.
Market scenario
According to trade sources, buyers are selectively concluding small deals to meet immediate requirements, while bulk buying is currently absent. A sponge iron producer said, “Most steelmakers are already covered as far as raw material is concerned, so there is no urgency to buy pellets aggressively. As a result, spot inquiries have remained thin in the last few days.”
Sellers, on the other hand, are maintaining their existing offers despite subdued demand. However, counters from buyers are limited, largely due to the ongoing lifting of previously booked material by major steelmakers. A pellet producer said, “We are holding our offers steady for now, but the market is quiet. Buyers are not very active, and negotiations are slow.”
The recent OMC auction saw bids rise in fines by around INR 400/t ($4/t) compared to the previous month. Despite this increase, no immediate impact has been observed on Raipur pellet prices so far. Market participants believe that the effect of higher iron ore prices has been offset by weak downstream demand and sufficient raw material availability with steelmakers.
Adding to the pressure, sponge iron prices witnessed a decline today, which further limited pellet inquiries. A steelmaker said, “The correction in sponge iron prices has made buyers more cautious. They are waiting for clearer signals before committing to fresh pellet purchases.”
However, some participants expect better price clarity to emerge in the coming days. Steelmakers indicated that market direction may become clearer once the impact of recent auctions and downstream price movements become fully clear. For now, demand for pellets remains low due to comfortable inventory levels.
Rationale
- PELLEX has been derived using data points, i.e., trades, offers, and bids. To download the detailed methodology, click here.
- No deals were recorded in this publishing window, so this category was taken for calculation. Thus, the T1 trade category was accorded 0% weightage.
- Thirteen (13) firm offers, bids, and indicative prices were heard. Nine (9) 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 1,600/t ($18/t) w-o-w on 20 January to INR 25,000/t ($275/t) exw-Raipur. Furthermore, prices dropped by INR 400/t ($4/t) d-o-d. Prices declined with limited spot bookings reported amid cautious buying and adequate material availability.
- Billet prices surge w-o-w: BigMint’s billet index increased by INR 1,550/t ($17/t) w-o-w to INR 40,850/t ($449/t) exw-Raipur on 20 January. Meanwhile, prices decreased by INR 300/t ($3/t) d-o-d. In Raipur, trading activity stayed largely confined to hand-to-mouth procurement, with only a few spot deals reported during the session. Market participants noted that persistent softness in finished steel demand has forced billet producers to trim prices in an attempt to stimulate buying, though confidence among buyers remains fragile
Outlook
Pellet prices in region are expected to remain stable. Sellers are closely watching buyer bids to assess their next moves, while the market awaits stronger demand cues.
Leave a Reply