India: PELLEX rises by INR 100/t ($1/t) as sellers raise offers further

• Raipur-based suppliers lift pellet quotes
• Positive trends in sponge, steel markets

Pellet prices in Raipur recorded an uptick of INR 100/t ($1.0/t) on 6 February after the upward price revision in local offers observed this week. Some urgent buying activity was seen by the regional players before the the upward revision came into effect today, with prices climbing back to late October 2025 levels amid improving fundamentals in the sponge iron and downstream steel market.

Trade and price movements

PELLEX, BigMint’s bi-weekly domestic pellet (Fe 63%) index for Raipur, inched up by INR 100/t ($1/t) to INR 10,250/t ($113/t) DAP on 6 February compared to the previous assessment on 3 February. Around 27,500 t of pellet deals (Fe 63%) were concluded in the market at INR 10,150/t DAP, reflecting active trade during the publishing window, while a few plants remained in negotiations.

Raipur-based pellet producers have raised offers for Fe 62.5-63% (+/-0.5) grade pellets by around INR 200/t ($2/t) to INR 10,200-10,300/t ($113-114) exw on 6 February. Strong prices in Raipur remains supported by healthy trade activity in the semi-finished steel segment across eastern India, which improved buying confidence.

Market scenario

The Raipur pellet market is currently firm on steady domestic consumption, with sentiment across buyers, sellers, and traders improving. Sellers sounded more confident, with producers noting stable enquiries and quicker deal closures. “Stronger trade in sponge iron and allied steel segments improved sentiment, with negotiations concluding faster than in the earlier phase,” a source informed BigMint.

A buyer source said, “Sponge iron plants across central India are operating at healthy levels, aided by improved billet and long steel movement in regional markets. While procurement is still largely requirement-based, several participants admitted that resistance to higher pellet offers has eased.” With downstream dispatches improving and pellet prices trending upward, buyers feel raw material coverage cannot be deferred for long, leading to more regular market participation.

Traders also pointed to better market liquidity. “Enquiries are converting into trades more quickly now,” a trader said, highlighting that Raipur-origin pellets continue to enjoy a freight advantage over Odisha material.

Rationale

• PELLEX has been derived using data points, i.e., trades, offers, and bids. To download the detailed methodology, click here.
• Two (2) deals were recorded in this publishing window, so this category was not taken for calculation. Thus, the T1 trade category was accorded 50% weightage.
• Fourteen (14) firm offers, bids, and indicative prices were heard. Twelve (12) were taken for price calculation and given balance 50% weightage.

Key market drivers

• Sponge iron prices rise w-o-w: Sponge iron prices surged by INR 1,000/t ($11/t) w-o-w on 6 February to INR 26,750/t ($287/t) exw-Raipur. Prices in Raipur inched up by INR 50/t d-o-d, tracking a slight improvement in buying interest. Sellers maintained firm offer levels, supported by constrained availability and bookings concluded in earlier sessions. However, overall demand recovery remains optimistic.
• Billet prices inch up w-o-w: BigMint’s billet index increased by INR 350/t ($3/t) w-o-w to INR 41,150/t ($454/t) exw-Raipur. Meanwhile, prices also rise by INR 100/t d-o-d. Market participation improved during the latter half of the trading session, with billet bookings concluded at varied price levels. The marginal uptrend was supported by a positive shift in sponge iron demand across key regions, which helped lift trade volumes modestly.