India: PELLEX remains stable amid limited trades

• Sponge iron and billet prices drop w-o-w
  
  
• Buyers engage in need-based purchases amid weak liquidity
  
  

PELLEX, BigMint's bi-weekly domestic pellet (Fe 63%) index for Raipur, remained stable at INR 9,300/t ($98/t) DAP on 7 July 2026 against 3 July.

Pellet prices in the Raipur region remained largely stable during the week, although trading activity was limited and confined to only a couple of sellers. Sellers' offers remained unchanged and buying interest continued to be subdued as the downstream steel sector faced persistent pressure.

Rationale

• PELLEX has been derived using data points, i.e., trades, offers, and bids. To download the detailed methodology, click here.
  
  
• Three (3) deals were recorded in this publishing window, and thus, two were taken for calculation. Thus, the T1 trade category was accorded 50% weightage.
  
  
• Thirteen (13) firm offers, bids, and indicative prices were heard, and eleven (11) were taken for price calculation and given the balance 50% weightage.
  
  

Price movements and offers

Pellet producers in Raipur kept offers stable for Fe 62.5/63% (0.5%) grade pellets at INR 9,100-9,200/t ($96-97/t) exw. A couple of plants are now accepting fresh orders amid ongoing maintenance shutdowns and pending dispatch of bulk sales in June.

Around 23,500 t of pellet deals were recorded by Raipur-based sellers at INR 9,200/t exw in this publishing window.

Market scenario

The recent decline in sponge iron and billet prices has significantly impacted pellet demand. Sponge iron manufacturers are operating cautiously, with many preferring to delay fresh procurement until there is greater clarity on raw material pricing and steel market direction.

A few transactions were concluded this week, but the overall market remained slow. Most buyers are purchasing only for immediate production requirements and are avoiding inventory build-up.

Weak sentiment in the finished steel market has further weighed on pellet consumption. Market sources noted that liquidity across the downstream steel sector remains tight following the sharp correction in steel prices. At the same time, rising inventories of finished steel products have reduced the urgency for mills to replenish raw material stocks.

A sponge iron producer commented, "The continuous fall in steel prices has affected margins and cash flow. With finished steel stocks increasing, there is little incentive to make aggressive pellet purchases at this stage."

Market participants also indicated that attention has shifted toward the NMDC price revision for July deliveries. Several steelmakers are expected to finalise fresh procurement plans only after the revised iron ore prices are announced, as the revision will provide a clearer indication of raw material costs for the coming month.

Another steelmaker source based in the region said, "We are currently lifting material booked under previous deals. Fresh purchases will likely be considered only after NMDC announces its July prices, as that will influence pellet pricing and overall procurement strategy."

Key market drivers

• Sponge iron prices fall w-o-w: Sponge PDRI prices decreased by INR 950/t ($10/t) w-o-w to INR 23,100/t ($243/t) exw Raipur on 7 July. However, prices in Raipur dropped by INR 300/t d-o-d. The correction was primarily driven by sluggish buying activity and weak market sentiment, with sellers lowering offer prices to conclude deals, resulting in most transactions being booked at the lower end of the prevailing price range.
  
  
• Billet prices decrease w-o-w: BigMint's billet index in Raipur fell by INR 950/t ($10/t) w-o-w to INR 38,000/t ($400/t) exw on 7 July. Additionally, the index decreased by INR 300/t d-o-d. Market participants noted that enquiries were limited and mostly focused on securing lower prices, prompting some mills to reduce offers to attract bookings. Meanwhile, weak cues from neighbouring markets and continued softness in finished steel prices kept pressure on the semi-finished steel segment, resulting in a cautious and bearish market sentiment.
  
  

Outlook

BigMint expects pellet prices to face downward pressure if the correction in steel prices persists. Unless downstream steel demand improves or finished steel inventories decline, pellet producers may be compelled to revise offers lower to stimulate buying interest. The market is therefore expected to closely monitor NMDC's July price revision, which could set the tone for pellet trade in the near term.