India: PELLEX rises INR 200/t ($2.5/t) amid hike in offers but buyers remain cautious

• Offers in Raipur increase by INR 200/t today 
• Weak downstream sentiments weigh on pellet sales 

The pellet market in Raipur remained firm this week, with some plants hiking their offers in today’s trading session. However, trading has been nearly absent during the assessment window amid weak market sentiments. Market participants reported that pellet suppliers are currently focused on dispatching previous bookings done in the first half of the month and have kept their sales windows closed.

Price movements, trades

PELLEX, BigMint’s bi-weekly domestic pellet (Fe63%) index for Raipur, increased by INR 200/t ($2.5/t) to INR 9,500/t ($110/t) DAP on 15 July 2025 compared to the previous assessment on 11 July. Around 10,000 of deals were recorded at INR 9,200/t ($107/t) exw a couple of days back.

A few Raipur-based pellet producers raised their Fe 63% (+/-0.5%) offers by INR 200/t ($2.5/t) to INR 9,400-9,500/t ($110-111/t) exw. However, no fresh deal was reported at revised price levels. Meanwhile, a few prominent suppliers held their offers, and sales were paused.

Pellet (Fe 62.5-63%) offers from Odisha for Raipur were heard at INR 9,000-9,400/t ($105-110/t) DAP.

Market scenario

A market participant informed, “Major sellers are withholding offers due to the uncertainty in the steel market. The recent drop in sponge iron and billet prices has turned buyers extremely cautious, limiting new purchases.”

A trader informed BigMint, “Buyers are resisting higher offers due to weak steel fundamentals. Most of them have already covered their requirements in the earlier window.”

Additionally, supply from Odisha-based pellet manufacturers remained absent, further narrowing options. Despite the firm trend in sponge iron prices w-o-w, recent deals have started reflecting a correction, contributing to the muted sentiment.

A buyer source said, “Market activity is expected to remain sluggish until the upcoming OMC auction on 19 June. Everyone is in a wait-and-watch mode.”

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 reported in this publishing window, but not taken for calculations. The T1 trade category was accorded 0% weightage.
• Twenty (20) firm offers, bids, and indicative prices were heard. Nine (9) were taken for price calculation and given a balance of 100% weightage.

Key market drivers

• Sponge iron tags stable w-o-w: P-DRI prices remained stable w-o-w at INR 23,250/t ($271/t) exw-Raipur on 15 July. Meanwhile, prices saw a slight drop of INR 100/t ($1/t) d-o-d today. Trades were largely subdued as end users are waiting for some improvement in market sentiments.
• Billet prices decline w-o-w: Billet prices in Raipur significantly dropped by INR 600/t ($7/t) w-o-w to INR 36,400/t ($424/t) exw today. Prices dropped by INR 100/t ($1/t) d-o-d. Spot offers saw minor downward adjustments throughout the day. While a marginal improvement in semi-finished steel demand was noted, overall trading remained largely need-based, with participants refraining from bulk procurement due to sluggish finished steel sales.

Outlook

The outlook remains uncertain with volatility expected to persist in the short term. Market participants are closely watching the OMC auction outcome for further cues on price direction.