India: PELLEX remains unchanged amid weak buying interest

• Subdued trading activity continued in Raipur
• Buyers are cautious with pockets of transactions

Pellet prices in the Raipur region continued to witness a slowdown this week as buying inquiries weakened significantly, coupled with subdued trading activity across the market. Despite recent hikes in sponge iron and billet prices, pellet demand failed to gain momentum, highlighting the cautious sentiment among buyers

Trade and price movements

PELLEX, BigMint’s bi-weekly domestic pellet (Fe63%) index for Raipur, remained unchanged at INR 9,800/t ($107/t) DAP on 23 January 2026 compared to the previous assessment on 20 January. No pellet deals were recorded in Raipur region amid the weak buying interest and wait and watch stance by local buyers at current offers.

Raipur-based pellet producers kept offers for Fe 62.5-63% (+/-0.5) grade pellets stable at INR 9,600-9,700/t ($105-106/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

Market participants indicated that overall market conditions remain weak, with buyers refraining from fresh procurement. A steelmaker said, “Even after the improvement in sponge iron and billet prices, pellet buying has not picked up. Buyers are extremely cautious and are avoiding purchases at current levels as they have previous inventories in hand.” Most buyers are reportedly procuring material strictly on a need-basis, while bulk purchases remain absent.

Pellet producers in the region confirmed that offers were largely maintained at existing levels during the week; however, no significant deals were concluded. A pellet producer added, “We have kept our offers unchanged, but there are hardly any counter bids coming from buyers. Trading activity has been negligible this week.”

Meanwhile, another local pellet seller noted that Odisha-based pellet sellers increased their offers by around INR 200-400/t this week, following the recent OMC auction. However, Raipur-based producers chose not to revise prices and continued to offer material at previous levels due to lack of buying inquiries. He said, “Although Odisha sellers have hiked prices post-OMC auction, local sellers are maintaining the same offers. Still, at these levels, no trades have been finalised.”

The lack of trading activity, even at unchanged prices, suggests that steelmakers are waiting for clearer price signals and improved downstream demand. With buyers adopting a wait-and-watch approach, the pellet market in Raipur is expected to remain volatile in the near term.

At NMDC Chhattisgarh auctions on 22 Janaury, 67,000-t iron ore fetched bids. From Bacheli mines, 21,500-t DR CLO (10-40 mm, Fe 67%) were booked at 13.5% premium (base INR 5,190/t), 45,500-t ROM (10-150 mm, Fe 65.5%) were sold at INR 4,540/t, while 68,100-t fines (Fe 60%) remained unsold at INR 3,150/t base price. From Kirandul mines, 21,500-t fines (Fe 64%) booked at INR 3,930/t. Prices exclude royalty, DMF, and NMEDT.

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.
• Eleven (11) firm offers, bids, and indicative prices were heard. Eight (8) 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 550/t ($6/t) w-o-w on 23 January to INR 25,100/t ($273/t) exw-Raipur. Furthermore, prices rose by INR 350/t ($4/t) d-o-d. Buying activity showed a slight improvement this week; however, overall procurement remained limited, with buyers largely restricting purchases to immediate requirements. Market participants noted that sentiment in the sponge iron market has improved slightly over the past 1-2 days.
• Billet prices surge w-o-w: BigMint’s billet index increased by INR 250/t ($3/t) w-o-w to INR 41,000/t ($446/t) exw-Raipur on 23 January. Meanwhile, prices increased by INR 400/t ($4/t) d-o-d. In Raipur, producers attempted to maintain offer levels, supported by relatively firm raw material replacement costs and stable operating margins. However, limited transaction volumes and persistent pressure from the finished steel segment capped any sharp hike this week.

Outlook

Trading activity may recover from next week, depending on buying sentiment and movement in downstream steel prices. However, until demand improves, pellet prices in the region are likely to remain stable.