SteelMint’s bi-weekly domestic pellet (Fe 63%) index, PELLEX, stands at INR 10,700/tonne (t) DAP Raipur on 31 Dec’21, up slightly by INR 50/t against the last assessment on 28 Dec’21. Around 10,000-15,000 t of deals were reported in this publishing window.
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 in this publishing window at INR 10,750/t DAP Raipur, considered as T1 trade for calculation of the index and accorded 50% weightage.
- Ten (10) firm offers and indicative prices were reported. Eight (08) were taken for price calculation and given 50% weightage.
- SteelMint received one bid and hence its was not considered for calculation of the index.
Central India-based pellet-makers kept offers stable at INR 10,700-11,000/t exw. Price indications in Jharsuguda, Odisha are at INR 9,800-9,900/t exw, up INR 100-200/t against 28 Dec’21.
As per sources, demand for pellets is still subdued as many buyers have shifted to DR-CLO after NMDC’s recent price cut. NMDC lumps and DR-CLO are attracting buyers. Also, the holiday mood on new year’s eve have kept participants away from the market.
SteelMint’s assessment for pellet-based DRI (P-DRI) rose by INR 250/t to INR 30,950/t exw-Raipur for FeM 80% material. However, on a w-o-w basis, prices rose by INR 1,000-1,100/t against INR 29,900/t last week.
Indian pellet market overview: The Indian pellet market witnessed a mixed trend in prices across locations.
SteelMint’s assessment for iron ore pellet (Fe 63%) prices in Bellary decreased to INR 10,300/t today against INR 10,600/t assessed on 28 Dec. Confirmed deals for 5,000 t were recorded at around INR 10,000/t exw.
Region-wise pellet offers and deals:
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