SteelMint: PELLEX falls further by INR 600/t ($8) in absence of trades

SteelMint’s bi-weekly domestic pellet index “PELLEX ” has decreased further INR 600/t to INR 15,400/t DAP Raipur. Interestingly, with steep decline in pellet offers of around INR 1,500/t seen in Bellary and Durgapur, competitive landed cost may attract Raipur based sponge makers, SteelMint notes.

Raipur pellet makers hold offer firm, landed offers from other states decline – Raipur (Central India) based pellet manufacturers have kept the offers stable from the last few days. The current offer for Fe 63% pellet stands at INR 15,800-16,000/t exw Raipur.

Pellet offers from Jharsuguda and Raigarh have fallen by around INR 600-700/t against last offer. However, one deal for around 10,000 t pellet from Odisha (Jharsuguda) was concluded to Bilaspur at INR 14,600/t exw.

Majority of sponge-makers yet to raise bids for pellet purchase – Majority of sponge makers are still less interested to procure pellet and are adopting ‘wait and watch’ approach for pellet procurement. Also, since they have pending deliveries of previous bookings, hence they are not in a hurry to make fresh purchases. However, some sponge players in urgent need for material are learned to be active in the market presently.

Few sponge makers in Raipur still offer pellet for resale at around INR 14,500/t (exw), however no deal has been heard so far.

Pellet sponge (P-DRI) prices in Raipur have remained stable w-o-w to INR 29,000/t exw today. However, on a daily basis prices have moved up INR 550/t.

Indian pellet market overview-: Indian pellet prices in all the key markets have recorded a fall of around INR 250-1,450/t in the later half of this week.

Rationale – PELLEX has been derived using data points: i.e., trades, offers and bids. You can download the detailed methodology by clicking on this link Click here

• No deal was reported in this publishing window and hence not considered for index calculation.
• Six firm offers and indicative price were reported, three were offered from Raipur and the rest from outside Raipur. All were taken for price calculation and given a weightage of 100%.
• SteelMint has received resale pellet offer from buyer side at INR 14,500/t (ex-plant) and included in price calculation in this publishing window.
• SteelMint has also received four (4) bids out of those two (2) were taken into consideration for index calculation today.

Region-wise pellet offers and deals-: