SteelMint: PELLEX falls by INR 100/t as trades remain subdued

SteelMint’s bi-weekly domestic pellet index, PELLEX, fell further by INR 100/t to INR 15,700/t DAP Raipur, on competitive pricing from other states. Only one deal was reported in this publishing window amid shrinking buying interest.

However, Raipur-based pellet producers have kept offers unchanged, with current offers for Fe 62.5%/63% pellets standing at INR 15,500-16,000/t exw. Raigarh-based producers have also kept offers stable at INR 15,000/t exw.

However, Jharsuguda-based pellet makers have lowered offers by INR 200/t to INR 14,600-14,700/t exw, while buying interest is INR 200-300/t lower than prevailing offers.

Amid subdued domestic sales, a central India-based pellet maker has concluded an export deal for Fe 64% material (2.5% Al) via a tender. The deal was heard concluded at around $243-245/t FoB (ex-plant realization of around INR 16,300-16,500/t) for 55,000 t, sources have confirmed.

P-DRI prices in Raipur have moved down further still by INR 450/t w-o-w to INR 28,850/t exw, against last week’s price at INR 29,300/t. SteelMint’s benchmark sponge P-DRI (FeM 80%) prices fell marginally by INR 50/t d-o-d on 6 Jul’21.

Indian pellet market overview-: Indian pellet prices across regions continued to drop further by around INR 200-450/t this week also. Durgapur-based pellet manufacturers have decreased offers due to bearish market sentiments. SteelMint’s current assessment for Durgapur pellet (Fe 63%) stands at INR 14,500/t, down by INR 250/t against the previous assessment.

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.
• Single deal was reported in this publishing window and considered as T1 for index calculation and given 50% weightage.
• Nine firm offers and indicative prices were reported. Three were from Raipur and the rest from outside the state capital. Eight were taken for price calculation and given a weightage of 50%.
• SteelMint also received a single bid which didn’t qualify for price calculation of the Index.

Region-wise pellet offers and deals: