India's Raipur PELLEX Index Holds Steady, Sponge Iron Prices Drop WoW

en.Wedoany.com Report, During the week ending March 24, pellet trade in India's Raipur region remained stable, but market sentiment was cautious with overall weak demand. Buyers refrained from active procurement at current price levels, and trading volumes were moderate, reflecting subdued market activity.

BigMint's bi-weekly domestic pellet index for Raipur, PELLEX, held steady on Monday at INR 10,800 per tonne (DAP), indicating softer market conditions compared to Friday. Offers for pellets of grade Fe 62.5-63% were lower at INR 10,600-10,800 per tonne (exw Raipur), with local sellers recording deals for around 36,000 tonnes at INR 10,600-10,700 per tonne (exw Raipur).

Market participants noted that buyers are currently adopting a wait-and-see approach, primarily due to sufficient inventory and limited immediate demand. A steelmaker commented, "Most buyers are reluctant to commit to purchases at current prices. They are procuring material only on an emergency basis, which is limiting overall market activity." Another pellet manufacturer highlighted, "We have kept prices unchanged, but inquiries have indeed slowed down. The market lacks momentum, and buyers are not showing urgency." Factors affecting pellet demand include the availability of alternative raw materials like iron ore lumps and cautious buying behavior ahead of the financial year-end.

In terms of key market drivers, sponge iron prices fell by INR 150 per tonne WoW to INR 25,750 per tonne (exw Raipur), reflecting weak buying interest. Meanwhile, billet prices dropped by INR 400 per tonne WoW to INR 40,850 per tonne (exw), with participants waiting for signs of recovery in finished steel sales. Looking ahead, pellet prices in Raipur are expected to remain under pressure in the near term, with some localized trades likely to be concluded by local sellers. The market direction will depend on the recovery of demand after the financial year-end.