India: PELLEX remains unchanged amid limited buying interest

• Trades remain moderate by steelmakers
• Barbil’s pellet offers rise, Raipur stable

The pellet market in Raipur remained stable as buyers engaged in need-based purchases. Trading activity remained subdued as participants refrained from bulk bookings, awaiting clarity on price trends.

BigMint’s bi-weekly domestic pellet (Fe63%) index remained stable at INR 9,850/t ($113/t) DAP Raipur on 7 March 2025 compared to the previous assessment on 4 March. In this publishing window, around 20,000 t of pellet (Fe62%) deals were concluded at INR 9,750 ($112/t) DAP Raipur. At the same time, around 20,000 t of pellet (Fe65%) were also got booked at INR 11,100/t ($128/t) exw-Raipur.

Meanwhile, pellet offers from Odisha’s Barbil region saw an uptick, which reduced procurement by Raipur buyers. Higher offers from the eastern region created resistance among buyers, limiting overall trade volumes.

Pellet offers in Raipur for Fe63% (+/- 0.5%) material remained stable at INR 9,800-9,900/t ($112-114/t) exw over the past couple of days. Odisha-based producers offered pellets in Raipur at INR 9,600-10,000/t ($110-115/t) DAP this week.

A market participant commented: “Sellers are maintaining their offers, but buyers are reluctant to make bulk purchases given the uncertainty in raw material costs.”

The rise in sponge iron and billet prices lent some support to pellet prices; however, transactions did not materialise as expected due to cautious buying sentiment.

A buyer informed, “Odisha pellet prices have increased, leading to a decline in purchases from Raipur mills. The market is waiting for NMDC’s iron ore price revision for March deliveries, which will set the tone for upcoming trades.”

Rationale

• PELLEX has been derived using data points, i.e., trades, offers, and bids. To download the detailed methodology, click here.
• One (1) deal has been reported so far in this publishing window and was taken for calculations. The T1 trade category was accorded 50% weightage.
• Sixteen (16) firm offers, bids, and indicative prices were heard. Sixteen (15) were taken for price calculation and given the balance 50% weightage.

Factors impacting pellet prices

• Sponge iron tags up w-o-w: P-DRI prices rose by INR 300/t ($7/t) w-o-w at INR 25,300/t ($290/t) exw-Raipur on 7 March. However, prices climbed by INR 200/t ($2/t) d-o-d today. The market witnessed an uptrend, as decent bookings were recorded yesterday. This led suppliers to lift offers. However, an average transaction volume recorded at today’s raised prices.
• Billet prices largely stable w-o-w: Billet prices in Raipur increased by INR 50/t ($0.5/t) w-o-w to INR 40,050/t ($460/t) exw today. D-o-d, prices remained unchanged. The billet index remained range-bound throughout the day, closing on a firm note, unchanged from yesterday’s closing. Modest buying activity was observed in the semi-finished and finished steel segments, though market participants faced volatility in offers d-o-d.

Outlook

According to BigMint’s analysis, pellet prices in central India are expected to remain volatile depending upon fluctuations in downstream steel prices or else until NMDC in Chhattisgarh revises its pricing.