SteelMint’s bi-weekly domestic pellet (Fe 63%) index, PELLEX, remained stable at INR 12,150/t DAP Raipur on 27 Aug’21. No deals were recorded by SteelMint during the current assessment period. India’s domestic pellet market continues to remain under pressure.
Raipur-based pellet makers kept offers stable at INR 12,000-12,300/t exw. Although some buyers indicated that offers floating in the market were INR 500/t lower than current offers, these could not be confirmed before publication of the index. Market sources are waiting for NMDC’s iron ore price announcement.
Jharsuguda-based producers have lowered offers further by INR 200-400/t and are currently floating offers at around INR 11,600-11,800/t exw. However, pellet producers in Raigarh have kept offers stable at INR 12,000/t exw.
Essel Mining cuts iron ore prices by up to INR 1,600/t ($22): Odisha’s Essel Mining has lowered offers for iron ore by up to INR 1,600/t. Prices of lump ore have been reduced by INR 1,000/t and that of fines by INR 700-1,600/t, sources informed SteelMint.
As per sources, the market is still weak in terms of demand as buyers are expecting further price cuts in the next few days. Export realisation on ex-plant basis also happens to be trending lower compared to prevailing domestic offers.
Sponge iron prices in Raipur drifted down today due to disparity in bids and offers. SteelMint’s price assessment for P-DRI (FeM 80%) fell by INR 300/t to INR 29,700/t exw. However, on a weekly basis, P-DRI prices have moved down sharply by INR 1,000/t.
Indian pellet market overview:
Indian pellet prices declined by around INR 300-950/t across regions in the last few days on falling domestic demand.
SteelMint’s current assessment for Barbil iron ore pellet (Fe 63%) stands at INR 11,950/t loaded on to wagon, down INR 50/t compared to the last assessment of INR 12,000/t on 24 Aug’21. Active sales of 108,000 t of pellets were recorded at INR 11,850-12,000/t in this publishing window.
SteelMint assesses Bellary iron ore pellet (Fe 63%) prices at INR 11,600-11,700/t exw, down compared to the last assessment of INR 11,900-12,100/t on 24 Aug’21. The market has witnessed a downtrend owing to a drop in sponge prices resulting in a reduction in pellet prices. Confirmed deals of about 7,000 t were recorded at INR 11,600-11,900/t exw-Bellary.
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 as T1 for index calculation, being given 0% weightage.
- Ten (10) firm offers and indicative prices were reported. Four were from Raipur and the rest from outside the state capital. Six (06) were taken for price calculation and given a weightage of 50%.
- SteelMint received no bid today and, therefore, none were considered for calculation of the index.
Region-wise pellet offers and deals:
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