India: PELLEX rises by INR 100/t ($1/t) amid strong steel market sentiment

• Billet prices rise by INR 3,600/t w-o-w
• Pellet offer expect to rise in near term

Pellet prices in the Raipur region remained firm on 2 January 2026, supported by a sharp upswing in downstream steel prices and improving market sentiment. Market participants noted that the recent strength in sponge iron and billet prices has provided strong cost support to pellet producers, limiting any downside risk in the near term.

Price movements, trades

PELLEX, BigMint’s bi-weekly domestic pellet (Fe63%) index for Raipur, rose by INR 100/t ($1/t) to INR 9,700/t ($108/t) DAP on Friday compared to the previous assessment on 30 December 2025. Deals for around 31,000 t were concluded by Raipur-based sellers at INR 9,500-9,600/t ($105-106/t) exw.

Raipur-based pellet producers have stable offers for Fe 62.5% (+/-0.5) pellets at INR 9,400-9,600/t ($104-106/t) exw. Producers such as Godawari has kept offers at INR 9,500/t ($105/t) for Fe 62.5%.

Meanwhile, some Odisha-based sellers offered material at higher levels of INR 9,900-10,300/t ($110-114/t) DAP in Raipur.

Market scenario

Sponge iron and billet prices have witnessed a hike of around INR 2,000-3,500/t over the last few days, which has encouraged pellet suppliers to maintain firm offers. A steelmaker said, “The rise in semi-finished steel prices has changed the sentiment. Pellet prices are well supported, and moderate trading activity continued in the market.”

Buyers were seen booking requirement-based quantities at prevailing price levels, anticipating a possible upward revision in pellet prices in the coming days. According to buyers, current procurement is largely driven by immediate needs, while expectations of further price hikes are prompting some to secure material early.

Sources highlighted that recent price hikes announced by Odisha-based pellet producers have also influenced sentiment in the Raipur market. A market participant mentioned, “With Odisha suppliers increasing their pellet offers, Raipur prices are expected to follow the trend shortly.”

Pellet suppliers in Raipur confirmed that offers are being kept firm, with trades being concluded at current levels. “We are accepting orders at existing offers, but there is clear resistance to any discounting,” a supplier noted.

Meanwhile, buyers reported an improvement in liquidity conditions, aided by better realizations in semi-finished and finished steel products. A buyer informed, “Liquidity has improved due to stronger steel prices, so we have booked raw material on a need basis.”

Market participants expect a price revision in the Raipur pellet market in the near term.

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 all were taken for calculation. Thus, the T1 trade category was accorded 50% weightage.
• Eleven (11) firm offers, bids, and indicative prices were heard. Five (5) were taken for price calculation and given a balance of 50% weightage.

Key market drivers

• Sponge iron prices rise w-o-w: Sponge iron prices rose by INR 1,800/t ($20/t) w-o-w on 2 January to INR 24,950/t ($277/t) exw-Raipur. However, prices surged by INR 400/t ($5/t) d-o-d. Prices supported by moderate restocking and an improvement in buying sentiment. Sellers in these regions either held firm or raised offers slightly, responding to improved trade activity.
• Billet prices surge w-o-w: BigMint’s billet index increased by INR 3,550/t ($39/t) w-o-w to INR 41,250/t ($457/t) exw-Raipur on 2 January. Meanwhile, prices lifted up by INR 800/t (9/t) d-o-d. Although the index moved higher, the overall buying remained muted as most participants had already covered their immediate requirements during earlier sessions at more favorable price levels. The recent uptick in prices led buyers to pause fresh bookings, awaiting stronger cues from the finished steel segment before committing further.

Outlook

According to BigMint, Raipur-based pellet offers are likely to revise in the coming week, although some trades may still conclude at current levels before any formal revision is announced.