en.Wedoany.com Reported - BigMint's bi-weekly Indian pellet (Fe 63%) index PELLEX showed that as of July 17, 2026, pellet prices in India's Raipur region edged up by INR 50/tonne compared to July 14, reaching INR 9,550/tonne ($99/tonne) DAP.
Over the past few days, pellet prices in the Raipur region have remained firm, driven by improved buying interest and tightening supply. Market participants indicated that procurement activities are gradually picking up, with buyers re-entering the market based on actual demand after weeks of cautious wait-and-see.
PELLEX is derived from data points, including transactions, offers, and inquiries. Two transactions were recorded during this release window, both included in the calculation, with the T1 transaction category assigned a 50% weight. A total of fourteen firm offers, inquiries, and indicative prices were heard, of which eleven were used for price calculation, accounting for the remaining 50% weight.
Pellet producers in Raipur maintained offers for Fe 62.5/63% (0.5%) grade pellets unchanged at INR 9,300-9,400/tonne ($97-98/tonne) ex-works. Most producers kept their existing offers, while a few sellers paused sales to monitor market dynamics. During this release window, Raipur sellers concluded transactions for approximately 21,000 tonnes of pellets at INR 9,400/tonne ex-works.
On the market front, a pellet producer noted a significant improvement in inquiries over the past few days, with pending shipments limiting new supply. The backlog of existing orders enabled manufacturers to maintain firm offers. Several pellet plants in the region underwent maintenance shutdowns, tightening supply conditions. Additionally, one producer diverted most of its output for captive use, reducing the volume available in the spot market. These factors constrained new supply and pushed prices higher.
On the demand side, rising prices of sponge iron and billets further bolstered market sentiment. A sponge iron buyer stated that the latest uptick in semi-finished steel prices improved confidence across the value chain, encouraging pellet consumers to replenish inventories before further price increases. Several buyers who previously relied on iron ore lumps from Odisha are now actively considering pellet procurement after encountering issues with iron ore shipments. This shift in procurement preference is expected to provide additional support for pellet demand, as pellets offer better operational efficiency for multiple sponge iron producers. Traders anticipate further price increases for pellets in the short term, attributed to persistent supply constraints and active pellet export transactions on India's east coast.
On key market drivers, sponge iron prices rose week-on-week. On July 17, sponge PDRI prices increased by INR 550/tonne ($6/tonne) week-on-week to INR 23,550/tonne ($245/tonne) ex-works Raipur. Supported by revived buying interest and a significant uptick in restocking activities by billet producers, the price rose by INR 350/tonne day-on-day.
Billet prices increased week-on-week. On July 17, BigMint's Raipur billet index rose by INR 200/tonne ($2/tonne) week-on-week to INR 37,800/tonne ($393/tonne) ex-works. Supported by improved buying interest and a substantial increase in bookings from the semi-finished steel segment, the index rose by INR 250/tonne day-on-day. Stronger procurement of billets and sponge iron helped stabilize spot prices, marking a recovery after a prolonged period of subdued market activity.
BigMint believes that stronger downstream steel prices, tighter regional supply, and improved procurement activities have collectively shifted market sentiment in favor of pellet producers. Unless supply conditions improve significantly, the Raipur pellet market is expected to remain firm, with potential further gains in the coming trading sessions.
