In the Raipur pellet market, sentiment has turned significantly positive after being heavily negative for a long time. After the major deterioration in feedstock prices towards the end of August, pellet prices have started to strengthen marginally, with reports of prices going up ₹150/t ranging between ₹10,200/t-₹10,300/t Raipur, with support provided by firm sponge iron and billet prices, even tighter supply conditions, along with better activity in the spot market.

Regional producers have raised their offers by ₹200/t. Steady demand and the ongoing maintenance shutdowns by suppliers in Odisha have severely reduced the competition. However, buyers are remaining on the sidelines, hesitant to lock in larger quantities at higher prices, and are preferring small lots and separate, individual purchases.

Outlook:

The pellet prices are expected to remain range-bound in the near term, but might see volatility in the upcoming week, depending on the trade of sponge iron and billet. The ramp-up of supply from Odisha, along with the changing demand pattern for finished steel products driven by the increasing pace of the festive season, is expected to support prices.