SteelMint’s bi-weekly domestic pellet (Fe 63%) index, PELLEX, stood at INR 13,000/tonne (t) DAP Raipur on 1 Mar’22, up around INR 350/t against the last assessment on 28 Feb’22. The index rebounded to a four-month high in a recent deal. Around 10,000 t of pellet deals have been 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.
- Around 10,000 t deal reported hence taken into consideration in this publishing window, and accorded 50% weightage.
- Seven (07) firm offers, bids and indicative prices were reported. All were taken for price calculation and given 50% weightage.
- SteelMint received single bid, and was given weightage in the index calculation.
Pellet-makers in Raipur kept the offers stable at INR 12,700-13,000/t exw. Limited deals were reported at the increased offer.
On the back of coal offers, sponge and billet prices increased sharply across regions.
Coal prices continues to reign high. South African RB2 (5500 NAR) coal was at INR 17,500/t at Gangavaram Port, owing to hike in oil prices due to the recent crisis between Russia-Ukraine. The existing shortage of coal led prices to shoot up this week.
Pellet-based DRI (P-DRI, FeM 80%) prices in Raipur increased by INR 5,200/t w-o-w to INR 38,200/t exw compared to last week’s offers. However, on a daily basis, prices increased sharply by around INR 700/t today.
Indian pellets market overview: Domestic pellet prices remained stable across regions, while the market awaited further clarity.
SteelMint’s current assessment for iron ore pellets (Fe 63%) remained range-bound at INR 11,500/t exw-Durgapur today.
Iron ore pellet (Fe 63%) prices in Bellary, Karnataka remained range-bound at INR 10,200/t exw today, as per SteelMint assessment. However, offers are likely to rise further in the near term.
Region-wise pellet offers and deals:
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