SteelMint’s bi-weekly domestic pellet (Fe 63%) index, PELLEX, stands at INR 11,800/tonne (t) DAP Raipur on 21 Jan’22, up INR 400/t against the last assessment on 18 Jan’22. Around 50,000 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.
- Three deals were reported, all of which were considered in this publishing window as T1 trades for calculation of the index; accorded 50% weightage.
- Seven (07) firm offers and indicative prices were reported. Five (05) were taken for price calculation and given 50% weightage.
- SteelMint received no bids and hence no bid was considered for calculation of the index.
A central India-based pellet-maker has increased offers by INR 500-700/t, while a few other producers were not offering in the market today. Offers in central India are at around INR 11,700-12,000/t exw.
Price indications in Jharsuguda, Odisha were at 11,000/t exw on 21 Jan. Hike in pellet export prices, sponge offers and active response at lump auctions kept domestic pellet prices supported.
India’s top iron ore miner NMDC had conducted an auction on 19 Jan’22 for nearly 320,000 t of iron ore from the Kirandul and Bacheli mines in Chhattisgarh. The auction received good response for lumps, with the entire quantity of DR-CLO getting booked, sources told SteelMint. Bids for DR-CLO increased by around INR 1,580-1,670/t, while those for Baila lumps, fines and run of mine (ROM) ore remained at the base price level.
Market sources are awaiting NMDC’s monthly price revision soon.
Pellet-based DRI (P-DRI, FeM 80%) prices rose by INR 600/t to INR 33,000/t. Producers are keeping prices high on rising raw material and billet prices amidst sufficient orders. However, on a daily basis, prices inched down INR 300/t.
Indian pellet market overview: The Indian pellet market witnessed an uptick in offers across regions in the range of INR 100-500/t except Bellary and western India.
- The current assessment for iron ore pellets (Fe 63%) stands at INR 10,250/t loaded on to wagon, up by INR 150/t against 18 Jan’22.
- Deals for 10,000 t of pellets were recorded at INR 10,200/t during the present assessment period with offers heard even at INR 10,500/t.
Region-wise pellet offers and deals:
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