SteelMint: PELLEX down by INR 250/t on limited trade

SteelMint’s bi-weekly domestic pellet (Fe 63%) index, PELLEX, stands at INR 10,200/tonne (t) DAP Raipur on 17 Dec’21, down by around INR 250/t against the last assessment on 14 Dec’21. Limited trade and lower bids pulled down the index.

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.
• One (01) deal was reported for around 7,000 t in this publishing window at INR 10,350/t DAP Raipur which was considered as T1 trade for calculation of the index and accorded 50% weightage.
• Nine (09) firm offers and indicative prices were reported. Seven (07) were taken for price calculation and given 50% weightage.
• SteelMint received three bids but only two were qualified for calculation of index.

Central India-based pellet maker kept offers stable at INR 9,800-10,200/t exw. However, other producers in Raipur either closed their sales or held back offers. Sellers in Jharsuguda, Odisha kept offers stable but inquiries are coming fewer and lower than the prevailing offer.

There is disparity between offers and bids in the Raipur market as buyers have already bought the material in sufficient volumes before the price hike. Also, improved supplies of DR-CLO from NMDC Chhattisgarh kept pellet demand low.

Also, volatility in sponge iron prices limited pellet bookings. SteelMint’s assessment for sponge iron, P-DRI (FeM 80%), dropped marginally by INR 100/t to INR 28,800/t exw-Raipur. Prices declined due to limited enquiries following a correction in billet prices by INR 200/t, d-o-d. However, P-DRI (FeM 80%), rose by INR 1,100/t exw against INR 27,700/t a week back.

Indian pellet market overview: The Indian pellet market witnessed mixed trends across locations in the country.

SteelMint’s assessment for iron ore pellet (Fe 63%) prices in Bellary increased to INR 10,550/t today against INR 10,350/t on 14 Dec’21.

Confirmed deals for 12,000 t were recorded in this publishing window at around INR 10,200-10,750/t exw.

Region-wise pellet offers and deals: