SteelMint’s bi-weekly domestic pellet (Fe 63%) index, PELLEX, stood at INR 10,850/tonne (t) DAP Raipur on 6 May, 2022, down INR 250/t compared to the last assessment on 3 May. Around 20,000 t of pellet deals (Fe 62-63%) were concluded at INR 10,900/t DAP recently and taken for price calculation 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.
- Two deals of around 20,000 t were reported after adjustment taken into consideration in this publishing window, hence, it was accorded 50% weightage for T1 trade.
- Seven (07) firm offers, bids and indicative prices were reported. Four (04) were taken for price calculation and were given 50% weightage.
- SteelMint received two bids, and both were considered for calculation of the index.
Godawari Power and Ispat Ltd (GPIL) has decreased pellet offers yesterday for domestic buyers by INR 400/t ($5/t) to INR 11,100/t exw ($146/t) from INR 11,500/t ($151/t). Meanwhile, other Raipur based pellet producers also cut offers by INR 400/t ($5/t) to INR 10,700-10,800/t ($140-142/t) exw. The decline in sponge iron prices and cheaper landed offers from neighbouring Odisha pulled down offers in Raipur.
Offers from Jharsuguda are heard at around INR 10,000-10,300/t exw.
Buyers are showing interest for pellets after price fall recently this week. As per sources, disparities in bids and offers narrowed down and a few deals are expected to be concluded. However, a few buyers expect more correction of around INR 200-300/t for Raipur pellet offers.
Pellet-based DRI (P-DRI, FeM 80%) prices in Raipur stood at INR 35,000/t exw, down further by around INR 1000/t w-o-w. However, on a daily basis, sponge iron prices increased by around INR 100/t .
Indian pellet market overview: Domestic pellet prices almost stable across the key pellet making regions except Bellary and Raipur.
- Iron ore pellet (Fe 63%) prices in Bellary inched down to INR 10,450/t exw today as against INR 10,640/t on 3 May, as per SteelMint assessment.
- Deals for 13,000 t were confirmed in this publishing window at around INR 10,300-10,500/t exw.
Region-wise pellet offers and deals:
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