- Trades by steelmakers remain moderate
- Pellet offers in Odisha and Raipur stable
Pellet prices in Raipur remained largely stable this week, with buyers staying cautious and refraining from bulk purchases. Market participants put up limited inquiries, as most buyers adopted a wait-and-watch approach. Pellet producers, on the other hand, kept their offers unchanged, reflecting the overall subdued market sentiment.
BigMint’s bi-weekly domestic pellet (Fe63%) index remained stable at INR 9,850/t ($113/t) DAP Raipur on 11 March 2025 compared to the previous assessment on 7 March. In this publishing window, around 35,000 t pellets (Fe62/63%) deals were concluded by Raipur based steelmaker at INR 9,600-9,800/t exw Raipur. Around 10,000 t higher grade pellet (Fe65%) also concluded in the Raipur region.
Pellet offers in Raipur for Fe63% (+/- 0.5%) material remained stable at INR 9,800-9,900/t ($112-114/t) exw over the past couple of days. Odisha-based producers offered pellets to Raipur at INR 9,600-10,000/t ($110-115/t) DAP this week.
A Raipur-based steelmaker said: “There is no urgency in the market right now. Most buyers are purchasing only as per immediate requirements.”
Some need-based deals were reported, but bulk buying remained absent. Meanwhile, prices of sponge iron (PDRI) and billets also hovered within a narrow range over the past week, showing a lack of significant movement in raw material costs.
In Odisha, pellet offers for Raipur buyers remained unchanged, but deals were yet to gain traction. A manufacturer informed, “Odisha-based suppliers are holding their offers, but demand remains weak from central India.”
The upcoming Holi festival break will slow down market activities in Raipur. A trader said, reflecting on current market dynamics, “Post-festival, we may see some movement in inquiries, but for now, prices are unlikely to see minor fluctuations.”
Rationale
- PELLEX has been derived using data points, i.e., trades, offers, and bids. To download the detailed methodology, click here.
- Five (5) deal has been reported so far in this publishing window and was taken for calculations. The T1 trade category was accorded 50% weightage.
- Sixteen (16) firm offers, bids, and indicative prices were heard. Sixteen (15) were taken for price calculation and given the balance 50% weightage.
Factors impacting pellet prices
- Sponge iron tags stable w-o-w: P-DRI prices remained largely stable w-o-w at INR 25,200/t ($289/t) exw-Raipur on 11 March. However, prices dropped by INR 100/t ($1/t) d-o-d today. The market remained rangebound in today’s trading session with limited deals heard.
- Billet prices largely stable w-o-w: Billet prices in Raipur decreased by INR 150/t ($2/t) w-o-w to INR 40,000/t ($459/t) exw today. D-o-d, prices fell by INR 100/t ($1/t).
Outlook
According to BigMint’s analysis, pellet prices in central India are expected to remain stable in the near term, as the market may picks up after post festivity.
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