Posted on 04 Dec 2025
India is increasing purchases of high-grade iron ore pellet and hot-briquetted iron as high-quality domestic ore-based feedstock supply stays tight and mills seek cleaner charge materials at competitive prices, Kallanish learns from various market sources.
Last week, around 35,000 tonnes of high-grade pellet and 15,000t of HBI were sold with delivery to the west coast. The price for 65% Fe grade pellets was between $118-122/t cif Kandla port, while HBI was heard booked at around $268-272/t cif basis. The product has around 79% Fe with very low phosphorus, which is attractive for electric arc and induction furnace units looking for productivity gains.
The cargoes are described as Oman origin, though several market participants believe the material is Iranian supply re-routed through Oman. Traders are preparing shipments for other ports as well, including Goa, Chennai and Tuticorin, as southern India demand firms.
In the case of eastern ports such as Vizag, the same material could be offered at $127-130/t for high-grade pellet and HBI at around $277-280/t cif Vizag basis. However, domestic material such as 63% Fe pellet is heard quoted at around INR 9,700-9,900/t, equal to $108-110/t, and DRI is at around INR 24,000-24,200/t, equal to $266-270/t in Raipur.
While overall prices of domestic material look lower and imported pellets carry a slightly higher Fe unit cost than domestic material, Indian mills still find them economically attractive due to better consistency, lower gangue and higher furnace productivity, market participants inform.
“The higher-grade imports reduce energy use, improve yield and provide more stable furnace cycles, which lowers the overall cost per tonne of liquid steel. This makes imports competitive even when headline per-Fe prices appear unfavourable,” says a Gujrat-based trader.
Sources note buyers across India are coordinating purchases more actively, helping traders clear cargoes on a stock-and-sale basis. Mills in Goa and Chennai have also begun sourcing imported pellets and HBI as landed costs and efficiency gains align.
A Dubai-based trader tells Kallanish: “At the start of 2025, it was difficult to place Iranian-origin pellets and HBI, but demand from India, especially from west and south where there is a shortage of high-quality material, has strengthened noticeably in recent months. Despite the softer rupee in the past few weeks, high-volume enquiries allow us to negotiate and keep offers competitive for Indian buyers.”
With domestic ore tightness unlikely to ease soon, India’s appetite for high-grade, low-impurity feedstock is expected to remain firm. Kandla, Goa and Tuticorin are likely to stay active discharge points, while mills in the east are also expected to join the buying trend in the coming months.
Source:Kallanish
