- Pellet offers from Raipur, Odisha stable
- Sponge PDRI, billet prices drop w-o-w
Pellet prices in central India’s Raipur region remained largely stable this week amid cautious buying interest owing to a fall in sponge iron and billet prices. Need-based trade was concluded by the Raipur pellet buyers, while bulk purchasing remained absent in the market.
BigMint’s bi-weekly domestic pellet (Fe63%) index remained stable at INR 10,250/t ($120/t) DAP Raipur on 8 April 2025 compared to the previous assessment on 4 April. In this publishing window, deals for around 20,000 t of pellets (Fe62.5%) were concluded by Raipur-based steelmakers at INR 9,700/t ($113/t) DAP Raipur from the Odisha-based producers but confirmation awaited. Raipur sellers concluded around 20,000 t of pellet (Fe63/65%) deals to local and neighbouring buyers.
Meanwhile, pellet sellers are holding their offers firm, with some deals being concluded on need basis in nearby regions. A pellet supplier said, “We are offering material only to select buyers who have urgent needs. The market sentiments were weak in the last two days, but inquiries for pellets were witnessed from the buyers.”
Raipur-based pellet producers kept their offers stable for Fe63% (+/- 0.5%) material at INR 10,200-10,300/t ($118-119/t) exw-Raipur. Odisha-based pellet producers offered Fe 62.5/63% grade in Raipur at INR 9,500-10,150/t ($111-118/t) DAP. Some pellet trades from Odisha to Raipur were also heard, though market sources stated that deal confirmations were still awaited.
A steelmaker commented, “Buyers are in a wait-and-watch mode. With falling finished steel prices, pellet purchases are being deferred. The downward trend in downstream products has weighed on sentiments, pushing most buyers to the sidelines.”
Market participants are now closely watching the upcoming price announcement by NMDC Chhattisgarh, which could influence pellet and iron ore prices, going forward. The iron ore price revision may lead to fresh pellet offers in the market.
Steelmakers are awaiting price clarity to resume purchases, while some pellet producers have halted fresh sales to focus on dispatches against previous deals. The market is expected to remain muted until a clear direction emerges from NMDC’s pricing strategy.
Rationale
- PELLEX has been derived using data points, ie, trades, offers, and bids. To download the detailed methodology, click here.
- One (1) deal has been reported so far in this publishing window, but not taken for calculations. The T1 trade category was accorded 0% weightage.
- Eighteen (18) firm offers, bids, and indicative prices were heard. Thirteen (13) were taken for price calculation and given the balance 100% weightage.
Factors impacting pellet prices
- Sponge iron tags fall w-o-w: P-DRI prices dropped by INR 300/t ($3.5/t) w-o-w to INR 26,100/t ($308/t) exw-Raipur on 7 April, only to recover by up to a mere INR 50/t ($0.5/t) d-o-d today. Deals remained under pressure today with pockets of trades concluded. However, market sentiments remained largely range-bound, resulting in only a modest uptick in semi-finished steel demand d-o-d.
- Billet prices down w-o-w: Billet prices in Raipur decreased by INR 550/t ($6/t) w-o-w to INR 41,550/t ($491/t) exw today. Furthermore, d-o-d, prices edged up by INR 50/t ($0.5/t). The index witnessed a slight recovery today following a significant drop in the previous session. The rebound was supported by a marginal improvement in finished steel demand, which led to a price recovery during the second half of the trading day.
Outlook
Pellet prices are expected to remain largely stable until NMDC’s price revision, BigMint observe. Any major fluctuations in downstream steel prices may also impact pellet offers likewise.
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