SteelMint’s bi-weekly domestic pellet (Fe 63%) index, PELLEX, inched down to INR 10,900/t DAP Raipur on 23 Nov’21 against INR 10,950/t last week. Limited dealswere reported so far this week as buyers have held back from bookings in expectation of further fall in prices.
Central India-based pellet makers have kept their offers stable,sources informed SteelMint. Current offers stand at INR 11,000-11,300/t exw-Raipur. Sellers in Odisha’s Jharsuguda have kept their offers unchanged as almost no dealswere concluded for quite a few days. Recently, producershave resumed operations aftermaintenance shutdown.
Buyers are not showing interest and bids are falling owing to declining sponge iron prices. However, a few deals happened last week at much lower rates but in Raipur the prevailing rate is still fetching low response.A few market participants are also exploring pellet offers from West Bengal for cost-effective landed offers.
SteelMint’s assessment for sponge iron, P-DRI (FeM 80%), in Raipur fell by INR 200/t, w-o-w, to INR 29,000/t exw.
Indian pellet market overview: Pellet markets across regions witnessed some mixed trends as prices dropped in eastern and southern India sharply on declining sponge iron prices.However,prices in central and western India have remained stable so far this week.
Pellet (Fe 63%) prices in Odisha’s Barbil have moved down to around INR 9,250/t exw, lower by INR 550/t against last 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.
- Two deals were reported in this publishing window hence considered as T1 trade for calculation of the index; accorded 50% weightage.
- Nine (09) firm offers and indicative prices were reported. Eight (08) were taken for price calculation and given 50% weightage.
- SteelMint received no bids;hence not taken for calculation of index.
Region-wise pellet offers and deals:
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