- NMDC reduces fines prices by INR 150/t
- Buyers expect pellet price drop next week
PELLEX, BigMint’s bi-weekly domestic pellet (Fe 63%) index for Raipur, remained stable at INR 9,300/t ($98/t) DAP on 10 July 2026 against 7 July.
Pellet prices in the Raipur region remained largely stable this week, supported by limited trading activity concluded by a few local sellers. However, overall market sentiment turned cautious after NMDC announced a reduction in iron ore prices for July, prompting buyers to step back and reassess procurement strategies.
NMDC has reduced its list prices of iron ore CLO (calibrated lump ore) and fines on 10 July 2026, BigMint learnt from sources. The miner has fixed prices of DR CLO (10-40 mm, Fe 67%) at INR 5,850/tonne (t) ($61/t) and of iron ore fines (-10 mm, Fe 64%) at INR 4,700/t ($49/t). Prices are on FOR basis from the miner’s Bacheli complex and exclude royalty, DMF, and NMEDT. Prices of all grades have decreased in the range of INR 150-500/t.
Rationale
- PELLEX has been derived using data points, i.e., trades, offers, and bids. To download the detailed methodology, click here.
- Four (4) deals were recorded in this publishing window, and thus, three were taken for calculation. Thus, the T1 trade category was accorded 50% weightage.
- Eleven (11) firm offers, bids, and indicative prices were heard, and eleven (11) were taken for price calculation and given the balance 50% weightage.
Price movements and offers
Pellet producers in Raipur kept offers stable for Fe 62.5/63% (0.5%) grade pellets at INR 9,100-9,200/t ($96-97/t) exw. Despite the cautious outlook, most Raipur-based pellet producers have maintained their existing offers, while a few sellers have temporarily suspended sales, opting to monitor market developments before entering new negotiations.
Around 24,000 t of pellet deals were recorded by Raipur-based sellers at INR 9,000-9,200/t exw in this publishing window.
Market scenario
According to market participants, a few deals were concluded earlier in the week as steelmakers booked material on a need-based basis to meet immediate production requirements. Trading activity, however, remained muted on the day following NMDC’s price revision, with most buyers preferring to wait for further clarity on pellet prices.
A Raipur-based pellet producer said, “Buyers had already covered their short-term requirements a couple of days ago. After the NMDC price cut, inquiries have slowed as customers expect pellet prices to soften in the coming days.”
The market is also facing pressure from the continued decline in sponge iron and billet prices, which has weakened confidence across the downstream steel value chain. Steelmakers believe the lower raw material costs could eventually translate into reduced pellet prices, resulting in a wait-and-watch approach from consumers.
A sponge iron manufacturer informed, “The correction in sponge iron prices has kept margins under pressure. With iron ore becoming cheaper, we expect pellet suppliers to revise offers downward before fresh buying resumes.”
Sellers are holding current offers for now, but it will be difficult to sustain these levels if buying remains weak and raw material costs continue to decline, sources said.
Furthermore, the Raipur pellet market remains in a transitional phase, with participants closely tracking downstream steel demand, sponge iron prices, and the pass-through impact of NMDC’s latest iron ore price revision before establishing the next pricing trend.
Key market drivers
- Sponge iron prices fall w-o-w: Sponge PDRI prices decreased by INR 550/t ($6/t) w-o-w to INR 23,000/t ($242/t) exw Raipur on 10 July. However, prices in Raipur dropped by INR 150/t d-o-d. Sellers continued to reduce offers to secure deals, resulting in most transactions being concluded at the lower end of the prevailing price range. However, lower offers failed to generate meaningful buying interest, keeping overall market activity subdued.
- Billet prices decrease w-o-w: BigMint’s billet index in Raipur fell by INR 900/t ($9/t) w-o-w to INR 37,650/t ($396/t) exw on 10 July. Additionally, the index decreased by INR 200/t d-o-d. Buying sentiment remained weak as many market participants had already secured adequate material during the previous session and opted to adopt a wait-and-watch approach. The absence of stronger demand from the finished steel segment further discouraged fresh billet procurement, resulting in limited spot transactions despite lower offers.
Outlook
BigMint expects that Raipur pellet prices are likely to witness a correction next week, as producers adjust their pricing in response to NMDC’s lower iron ore prices for July. Several participants believe sellers may reduce offers once the impact of the revised ore prices is reflected in production costs and buyer expectations.
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