- Festive season, cautious sentiment keep trade limited
- Sponge iron, billet prices drop by INR 700-900/t w-o-w
Pellet prices in the Raipur region remained largely stable this week, though trading activity was nearly absent. The ongoing festive season, coupled with weak market sentiments, kept buyers on the sidelines, leading to muted demand. Market participants highlighted that buyers are exercising caution in view of the recent decline in sponge PDRI and billet prices, which has further dampened fresh inquiries.
Price movements, trades
PELLEX, BigMint’s bi-weekly domestic pellet (Fe63%) index for Raipur, remained stable at INR 10,300/t ($116/t) DAP on 30 September 2025 compared to the previous assessment on 26 September. Deals for around 5,000 t were recorded in the Raipur market in the last couple of days.
Raipur-based pellet producers kept their offers for Fe 63/63.5% (+/-0.5%) material stable at INR 10,200-10,500/t ($115-118/t) exw recently. Meanwhile, a few plants hiked their offers, though no deals were concluded.
Some Odisha-based suppliers offered pellets at INR 9,800-10,400/t ($110-117/t) DAP Raipur, but buyers remained cautious and deals were absent.
Market scenario
A Raipur-based pellet trader said, “Most buyers are waiting for clarity on sponge iron and semi-finished prices before entering into new deals. There is no urgency in the market right now, and only selective need-based purchases are happening.”
Adding to the subdued tone, several local sellers kept their sales closed and refrained from offering fresh volumes in the market. Deals heard in the region were mostly linked to the dispatch of older contracts, with little sign of new transactions taking place.
Meanwhile, Odisha-based suppliers also stayed away from quoting to Raipur buyers, further limiting liquidity.
A buyer noted, “The current market dynamics are uncertain, as sellers are keeping firm offers. We are expecting a price cut for our new orders. The market will get clarity after the Dussehra festival.”
Despite stable offers, uncertainty persists, with prices expected to remain volatile in the near term. Some sources said that fluctuations in sponge iron and semi-finished steel prices are likely to dictate pellet buying activity over the coming weeks. Until then, market participants expect Raipur pellet trades to remain subdued, with sentiment-driven volatility guiding the trend.
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 reported in this publishing window, which was not taken for calculation. Thus, the T1 trade category was accorded 0% weightage.
- Seventeen (17) firm offers, bids, and indicative prices were heard. Fourteen (14) were taken for price calculation and given a balance of 100% weightage.
Key market drivers
- Sponge iron tags down w-o-w: P-DRI prices declined by INR 700/t ($8/t) w-o-w to INR 24,100/t ($271/t) exw-Raipur on 30 September while falling by INR 200/t ($2/t) d-o-d. The overall market sentiment stayed bearish, as no supportive cues emerged from the semi-finished and finished steel segments. This lack of direction discouraged speculative buying, keeping market participation low.
- Billet prices drop w-o-w: Billet prices in Raipur decreased by INR 850/t ($10/t) w-o-w to INR 36,150/t ($407/t) exw today. Prices fell by INR 200/t ($2/t) d-o-d. The semi-finished steel market remained under pressure throughout the session, with buyers refraining from active procurement. Weak cues from the finished steel market discouraged fresh bulk bookings, while continuous corrections over the past sessions reinforced a cautious approach among participants.
Outlook
According to BigMint’s analysis, pellet prices are expected to correct in the near term as trading resumes following the Dussehra festival.
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