SteelMint: PELLEX remains stable in absence of trade

SteelMint’s bi-weekly domestic pellet (Fe 63%) index, PELLEX, stands at INR 11,800/tonne (t) DAP Raipur on 25 Jan’22, stable against the last assessment on 21 Jan’22. No deal has been heard for this so far this 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.
• No deal was reported, therefore not considered in this publishing window as T1 trades for calculation of the index; accorded 0% weightage.
• Ten (10) firm offers, bids and indicative prices were reported. Seven (07) were taken for price calculation and given 100% weightage.
• SteelMint received three (03) bids and only two (02) were considered for calculation of the index.

Central India-based pellet-maker kept the offers stable, 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 25 Jan’22. Hike in coal  and sponge offers kept the domestic pellet prices supported. In a confirmed deal, 12,000 t of South African RB2 (5500 NAR) coal was booked at INR 13,900/t at Gangavaram Port for Feb’22 arrival. While offers were heard at INR 14,200/t, no deal was concluded at this price.

Market sources are still awaiting NMDC’s monthly price revision soon.

Pellet-based DRI (P-DRI, FeM 80%) prices rose w-o-w by INR 1,000/t to INR 32,800/t. The index moved north following improvement in demand as well as higher offers by suppliers on strengthening sponge iron and raw materials prices. However, on a daily basis, prices inched up INR 200/t.

Indian pellet market overview: The Indian pellet market remained almost stable across the region except in Bellary and eastern India.

Region-wise pellet offers and deals: