Pellet trade in the domestic market have slowed down on declining sponge iron and billet prices. However, pellet offers remain supported. SteelMint’s bi-weekly domestic pellet index, “PELLEX” remains stable at INR 16,300/t, DAP Raipur, this week. No deals were reported in this publishing window, though.
A couple of Raipur-based pellet producers are still not offering material in the merchant market owing to recently-concluded export bookings.
The current offer for Fe 62.5%/63% pellet stands at INR 16,000-16,500/t, exw Raipur. Jharsuguda-based producers have also raised offers by INR 300/t, although no deals have as yet been reported . However, pellet trade of around 8,000-9,000 t were concluded from Rourkela by Raigarh-based players.
However, pellet trade of around 12,500 t were concluded from Rourkela by Raigarh-based players.
NMDC rolled over iron ore prices- NMDC Chhattisgarh has kept iron ore offers unchanged for Jun’21 deliveries against market expectations of a price hike after OMC received aggressive bids at its iron ore lump auction last week.
Buyers, though, are still not showing much interest in pellet due to bid-offer disparity. Buyers are asking for lower bids as sponge prices are not very supportive. One bid was reported at INR 15,000/t, exw Raipur.
Pellet sponge (P-DRI) prices in Raipur today decreased by INR 300/t to INR 30,500/t, exw. However, on a weekly basis, prices moved up by INR 500/t.
Indian pellet market overview-: Pellet prices across markets in the country remained largely stable. Minimal deals were reported amid falling sponge iron prices.
However, Bellary-based iron ore pellet producers have increased offers by around INR 300/t 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 deals was reported in this publishing window and hence not considered for index calculation and kept 0% weightage.
- Six firm offers and indicative prices were reported. Two were from Raipur and the rest from outside the state capital. All the offers were taken for price calculation and given a weightage of 100%.
- SteelMint has received a bid in this publishing window but not taken into consideration for index calculation today. Bid was not given any weightage as it was an outlier as per our methodology.
Region-wise pellet offers and deals:
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