India: PELLEX rises by INR 200/t ($2/t) in recent offers by Raipur producers

• Odisha-based sellers hike pellet offers
• Buyers wait for better market dynamics 

Pellet prices in the Raipur region witnessed a hike of INR 200/t ($2/t) recently following a correction in local pellet offers observed a day earlier. The upward revision came as Raipur-based pellet producers adjusted their offers in response to improving fundamentals in the sponge iron and downstream steel market.

Trade and price movements

PELLEX, BigMint’s bi-weekly domestic pellet (Fe63%) index for Raipur, rose by INR 200/t to INR 10,000/t ($109/t) DAP on 30 January 2026 compared to the previous assessment on 27 January. A deal for around 10,000 t pellets (Fe 62.5%) was concluded by a local pellet supplier at INR 9,900/t exw. Meanwhile, other plants failed to conclude deals in this publishing window.

Raipur-based pellet producers have raised offers for Fe 62.5-63% (+/-0.5) grade pellets by INR 200/t ($2/t) to INR 9,800-9,900/t ($107-108/t) exw on 29 January. Recent increases in pellet prices in Raipur could be attributed to rising prices of iron ore fines and the recent hike in pellet offers from Odisha.

Meanwhile, some Odisha-based sellers offered material at higher levels of INR 10,000-10,300/t ($109-112/t) DAP in Raipur.

Market scenario

According to market participants, the price increase was largely driven by rising raw material costs. A source informed, “Iron ore fines prices have increased in Odisha and Maharashtra, which directly impacted pellet production costs. Sellers had limited room to hold prices at previous levels.” The increase in iron ore prices prompted local producers to revise their pellet offers despite cautious demand conditions.

However, trading activity remained moderate at the revised price levels. Buyers were hesitant to book material immediately, preferring to assess market sustainability before committing to purchases. A pellet producer said, “Deals are happening, but volumes are limited. Buyers are cautious of the new offers and are closely tracking steel price movement.”

Pellet producers also acknowledged the slow response from buyers. Another producer stated, “Inquiries from steelmakers are currently weak. While offers have been revised, actual deal conversions are taking time.” Despite this, producers remain optimistic due to the continued strength in the downstream steel and sponge iron segments, which are providing overall market support.

Market sources further highlighted that Odisha-based pellet material remains commercially unviable for Raipur buyers due to higher prices, giving local sellers a competitive edge. A buyer added, “Local availability and freight advantage may lead to some trades next week.”

Participants expect pellet prices in Raipur to remain rangebound in the near term. While immediate acceptance of higher offers remains limited, trade activity is likely to pick up gradually if steel prices continue their upward trend and raw material costs stay firm. Market sentiment remains cautiously stable as buyers and sellers await clearer demand signals.

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 recorded in this publishing window, so this category was taken for calculation. Thus, the T1 trade category was accorded 50% weightage.
• Twelve (12) firm offers, bids, and indicative prices were heard. Eleven (11) were taken for price calculation and given 50% weightage.

Key market drivers

• Sponge iron prices rise w-o-w: Sponge iron prices surged by INR 650/t ($7/t) w-o-w on 30 January to INR 25,750/t ($280/t) exw-Raipur. Furthermore, prices rose by INR 100/t ($1/t) d-o-d. Buying activity remained low to moderate, as limited enquiries were reported in the market during the day. Market participants indicated that substantial material bookings had already taken place over the past few sessions, and mills are currently focused on dispatching previously booked material. Additionally, with the upcoming Union Budget, the market is in a wait-and-watch mode, with participants expecting an improvement in sentiment in the coming week.
• Billet prices drop w-o-w: BigMint’s billet index decreased by INR 200/t ($2/t) w-o-w to INR 40,800/t ($444/t) exw-Raipur on 30 January. Meanwhile, prices decreased by INR 150/t ($1.5/t) d-o-d. Prices fell today as weakening demand and subdued participation continued to weigh on the semi-finished steel market.