India: PELLEX remains stable amid weaker finished steel prices

• Sellers maintain offers but buyers inactive
  
  
• Slower downstream sales tighten liquidity
  
  

Pellet prices in the Raipur region remained largely stable over the past few days on 28 April 2026, with market activity showing signs of moderation amid subdued demand, weaker finished steel prices, and cautious buyer sentiment. Despite sellers maintaining their offers, trading momentum slowed, with only limited deals concluded during the current publishing window.

Trades and price movements

PELLEX, BigMint's bi-weekly domestic pellet (Fe 63%) index for Raipur, remained stable at INR 10,400/t ($110/t) DAP on Tuesday compared to 24 April. BigMint recorded deals for around 21,000 t, concluded at INR 10,200-10,300/t ($108-109/t) exw-Raipur by local pellet producers.

Raipur-based producers kept offers for Fe 62.5/63% (+/-0.5%) pellets stable at INR 10,200-10,300/t ($108-109/t) exw today. Some Odisha-based producers offered pellet (Fe 62.5-63%) to Raipur-based buyers at INR 9,900-10,200/t ($105-108/t) DAP Raipur, but no deals were recorded in the last couple of days.

Market scenario

Market participants indicated that while prices have not witnessed any significant correction, buyers remained inactive. A Raipur-based pellet producer highlighted the slowdown, stating that buyers are not responding to current offers, resulting in no fresh sales over the past three to four days.

Buyers attributed the cautious approach to recent weakness in finished steel prices, particularly in the rebar segment. One buyer commented, "The decline in rebar prices has created uncertainty in the market, prompting participants to hold procurement decisions until greater price clarity emerges." Rebar (12-25mm, IF route, Fe 500D) prices in Raipur dropped by INR 700/t w-o-w to INR 49,300/t exw today.

Additionally, while sponge iron prices have remained stable, downstream sales have slowed, affecting overall liquidity in the market. A sponge iron manufacturer noted, "Slower finished goods movement is limiting appetite for aggressive raw material procurement, thereby impacting pellet demand indirectly."

Another market participant noted, "Several buyers had already secured sufficient volumes in the previous week, allowing them to delay fresh bookings for now. This inventory cushion, combined with uncertain steel market trends, has reinforced the cautious stance among buyers."

Furthermore, some buyers are currently focused on lifting material from Odisha and Maharashtra for earlier iron ore lumps deals (booked at INR 10,200/t DAP from Maharashtra), which have further reduced immediate demand for fresh pellet procurement in the Raipur market.

Rationale

• PELLEX has been derived using data points, i.e., trades, offers, and bids. To download the detailed methodology, click here.
  
  
• Three (3) deal was recorded in this publishing window, and all were taken for calculation. Thus, the T1 trade category was accorded 50% weightage.
  
  
• Fourteen (14) firm offers, bids, and indicative prices were heard, and ten (10) were taken for price calculation and given the balance 50% weightage.
  
  

Key market drivers

• Sponge iron prices fall w-o-w: Sponge PDRI prices dropped by INR 200/t ($2/t) w-o-w to INR 25,750/t ($274/t) exw Raipur on 28 April. Prices dropped by INR 150/t d-o-d today. Sponge iron prices in the Raipur cluster fell by INR 150/t, as lower bids and weak bookings exerted additional pressure on spot prices despite reduced offers.
  
  
• Billet prices down w-o-w: BigMint's billet index in Raipur decreased by INR 350/t ($350/t) w-o-w to INR 41,900/t ($444/t) exw on 28 April. Prices fell by INR 150/t d-o-d today. Market activity remained subdued, with sellers facing uncertainty over pricing strategy amid constrained availability. While producers attempted to hold offers supported by limited competition from neighbouring markets, weak demand conditions restricted any fruitful recovery in prices.
  
  

Outlook

According to BigMints analysis, pellet prices in Raipur will remain stable this week. However, subdued buyer participation and slower bidding activity are likely to persist through the week unless there is a clearer directional movement in downstream steel prices and improved liquidity in the market.