India: PELLEX rises by INR 250/t ($2.5/t) post NMDC, Lloyds Metals iron ore price revision

• Raipur sellers increase pellet offers by INR 200-300/t
• Few buyers purchase material at old offers couple of days back

Pellet prices in Raipur have recorded an increase of INR 200-300/t ($2-3/t) over the past few days on 7 April, supported by firm trends in sponge iron and billet prices, along with a sharp rise in iron ore offers by major miners such as NMDC Limited and Lloyds Metals and Energy Limited for April deliveries.

Trades and price movements

PELLEX, BigMint’s bi-weekly domestic pellet (Fe 63%) index for Raipur increased by INR 250/t ($2/t) INR 10,900/t ($113/t) DAP on Tuesday, compared to 3 April, Friday, reflecting softer market conditions. BigMint recorded deals for around 10,000 t concluded at INR 10,500-10,600/t exw of old offers and 30,000 t was concluded at INR 10,800/t exw Raipur by local pellet producers.

Raipur-based pellet producers raised offers for Fe 62/63% (+/-0.5%) material by INR 200/t ($2-3/t) to INR 10,700-10,800/t ($115-116/t) exw. The increase in pellet prices was followed by a hike of INR 450-550/t ($5-6/t) in iron ore prices by NMDC Chhattisgarh and Lloyds Metals for Apr’26 delivery.

NMDC announced its list prices of iron ore CLO (calibrated lump ore) and fines on 5 April, BigMint learnt from sources. The miner has fixed prices of DR CLO (10-40 mm, Fe 67%) at INR 5,900/tonne (t) ($63/t) and of iron ore fines (-10 mm, Fe 64%) at INR 4,500/t ($48/t). Prices are on FOR basis from the miner’s Bacheli complex and exclude royalty, DMF, and NMEDT. Prices of all grades were raised by INR 450-550/t.

Lloyds Metals and Energy has raised its prices for iron ore fines, lumps, and pellets in Chandrapur by INR 400-500/t. Iron ore fines (Fe 63%) increased by INR 400/tonne (t) ($4/t) w-o-w to INR 6,600/t ($71/t) FOR Balharshah as of 5 April. Lump offers rose by around INR 500/t ($5/t) to INR 9,885/t ($106/t) FOR Chandrapur, while pellet prices were also hiked by INR 500/t ($5/t) to INR 11,835/t ($127/t) exw.

Market dynamics

Market participants highlighted that the increase in upstream raw material costs has directly impacted pellet producers, prompting them to revise their offers upward. However, the transition to higher price levels has been gradual, as a few transactions were still concluded at previous price levels. At the same time, several deals are currently under negotiation, indicating a cautious yet active market sentiment.

Sponge iron manufacturers noted that the sharp hike in iron ore prices by NMDC has been a key driver behind the recent uptick in pellet prices. One sponge producer commented that the sudden increase has forced them to reassess their raw material procurement strategies. A market participant said, “We are closely analyzing market dynamics before making further purchases, as cost pressures are building up across the market commodities.”

Another buyer mentioned that while there are alternative procurement options available from Odisha-based suppliers, a significant portion of their requirements continues to be met through local pellet plants in and around Raipur. A buyer added, “We have booked some quantities at earlier prices, which gives us temporary relief. However, going forward, we may have to accept revised offers if the trend continues.”

Pellet producers, on the other hand, are currently in a wait-and-watch mode, anticipating fresh inquiries from buyers. Industry sources suggest that more deals are likely to be finalized in the latter half of the week as both buyers and sellers align on pricing expectations.

Market sentiment remains moderately firm, backed by supportive downstream steel prices and elevated raw material costs.

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, and one (1) was taken for calculation. Thus, the T1 trade category was accorded 50% weightage.
• Twenty (20) firm offers, bids, and indicative prices were heard, and eighteen (18) were taken for price calculation and given the balance 50% weightage.

Key market drivers

• Sponge iron prices surge w-o-w: Sponge PDRI prices rose by INR 750/t ($8/t) w-o-w to INR 27,550/t ($296/t) exw Raipur, reflecting firm market momentum. Sponge iron prices in the Raipur cluster inched up by INR 100/t d-o-d, supported by firm input costs and recent booking trends. However, buying activity remained moderate at elevated price levels, with most deals concluded through negotiations.
• Billet prices rise w-o-w: BigMint’s billet index in Raipur lifted by INR 1,750/t ($19/t) w-o-w and rose by INR 400/t ($4/t) d-o-d to INR 43,550/t ($469/t) ex-works on 31 March. Market activity remained dynamic throughout the session, supported by positive cues from northern India and steady demand from neighbouring regions. Improved enquiries translated into moderate booking volumes at varied price levels, while a slight recovery in finished steel demand helped sustain upward momentum in billet prices.

Outlook

According to BigMint analysis, pellet prices are expected to remain stable at current levels in the near term, with moderate trading activity anticipated from local steel manufacturers as they cautiously navigate the evolving market conditions.