Pellet prices in Raipur increased by ₹200–300/t on 10 February, with Fe 63% rising to ₹10,550/t DAP and ex-works deals for Fe 62.5–63% concluded at ₹10,300–10,400/t. Producers raised fresh offers to ₹10,400–10,500/t following NMDC’s ₹100/t hike in iron ore prices for February deliveries. The upward revision was supported by active trades at previous levels, a sharp week-on-week rise of ₹1,950/t in sponge iron prices, and firmer billet rates. Higher raw material costs and improved sentiment in the semi-finished steel segment strengthened sellers’ confidence, although some buyers turned cautious and evaluated iron ore lumps as a more economical alternative at elevated pellet prices.

Outlook:

The expectation is for pellet pricing to continue to be relatively flat at new, established levels, and downside is limited as the fundamentals for iron ore remain strong and stable for sponge iron. Demand for pellets on the spot market is likely to be moderate, with customers being sufficiently covered, but continuous inquiry levels and stronger finished steel liquidity may support pellet sales at their current offer prices. Any changes from here on out will depend upon the movement in raw material prices and the ability of the sponge iron and billet markets to recover.