Dear Customers,
To expand SMM’s coverage of the international pellet-based sponge iron market and provide greater price transparency and reduce trading risks for market participants. SMM will launch three daily India’s domestic pellet-based sponge iron price assessments on 25 August 2026.
The new assessments will reflect prevailing spot-market transaction levels for Bellary, Raipur and Chennai for pellet-based sponge iron EXW and delivered. The assessments will be based on information collected from suppliers, traders, steelmakers and other active market participants, including confirmed transactions, bids and offers that meet or can be normalized to SMM’s assessment specifications.
This initiative represents an important step in strengthening SMM’s coverage of India’s domestic pellet-based sponge iron market and will provide independent benchmarks for procurement negotiations, contract valuation, market analysis and risk management.
Details of the New Price Assessments
|
Price assessment |
Price definition |
Quality standard |
Delivery basis |
|
Pellet-based Sponge Iron Fe 70-80% EXW Bellary |
Pellet-based Sponge Iron Fe 70-80% EXW Bellary, INR/tonne |
IS 15774:2018 |
EXW Bellary |
|
Pellet-based Sponge Iron Fe 70-80% EXW Raipur |
Pellet-based Sponge Iron Fe 70-80% EXW Raipur, INR/tonne |
IS 15774:2018 |
EXW Raipur |
|
Pellet-based Sponge Iron Fe 70-80% delivered Chennai |
Pellet-based Sponge Iron Fe 70-80% delivered Chennai, INR/tonne |
IS 15774:2018 |
delivered Chennai |
Assessment Specifications
- Assessment frequency: Daily on Indian working days
- Information-collection window: 13:00–14:00 India Standard Time
- Publication time: 15:00 India Standard Time
- Currency and unit: INR/tonne
- Minimum cargo size: 20 tonne
- Shipment period: Within 10-15 days
- Payment terms: Settlement in Cash INR, or other standardized payment methods
- Tax basis: Exclusive of applicable taxes and duties
Pellet-based Sponge Iron (Direct Reduced Iron, DRI) produced by the direct reduction of iron-ore pellets, conforming to IS 15774:2018. Total Iron (Fe) 70–80%, Carbon (C) 0.10–1.50%, Phosphorus (P) ≤0.08%, Sulphur (S) ≤0.03%. Suitable for melting in induction and electric-arc furnaces.
SMM will prioritize confirmed arm’s-length transactions, followed by firm bids and offers and corroborated market indications. Reported information may be normalized for differences in origin, grade, destination port, quantity, shipment period and payment terms in accordance with the SMM price methodology.
The three assessments will be published under International Direct Reduced Iron (DRI) (New) from 25 August 2026.
SMM welcomes feedback from market participants regarding the new assessments.
Shanghai Metals Market (SMM)
Steel Research Team
21 August 2026