SteelMint: PELLEX up by INR 150/t on rising offers, improved trade

SteelMint’s bi-weekly domestic pellet (Fe 63%) index, PELLEX, stood at INR 8,150/tonne (t) DAP Raipur on 5 July 2022, up by around INR 150/t compared to the last assessment on 1 July. Around 15,000 t of pellet (Fe 62/Fe63%) deals were reported at around INR 7,800-7,900/t DAP Raipur and all were taken into consideration 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 totalling 30,000 t were reported and only one deal of 15,000 t was taken into consideration in this publishing window and hence accorded 50% weightage for T1 trade.
• Nine (09) firm offers, bids and indicative prices were reported. Around six (06) were taken for price calculation and given 50% weightage.
• SteelMint received one bid at around INR 7,150/t DAP Raipur, and was not considered for calculation of the index.

Godawari Power and Ispat Ltd (GPIL) raised pellet offers today by INR 300/t to INR 8,500/t ($107/t). Meanwhile, offers from other Raipur-based pellet producers are assessed at INR 8,200-8,300/t ($104-105/t) exw. A hike in sponge iron prices on seasonal constraints led to the rise in pellet offers.

Pellet-based DRI (P-DRI, FeM 80%) prices in Raipur rose by INR 400/t to INR 33,300/t exw. On a daily basis, sponge iron prices increased by around INR 300/t.

Indian pellets market overview:

• Current assessment for Odisha’s Barbil iron ore pellets (Fe 63%) stands at INR 7,100/t loaded on to wagon. However, no active deals were reported this week.
• Iron ore pellet (Fe 63%) prices in Bellary increased to INR 9,400/t exw today as against INR 9,200/t on 1 July, as per SteelMint’s assessment. Confirmed deals of 9,000 t were recorded in this publishing window at around INR 9,200-9,300/t exw. Lack of iron ore inventory in Karnataka amidst lack of clarity on sales and limited fresh supply kept pellet demand supported.

Region-wise pellet offers and deals:

To know more about the Indian iron ore market outlook, watch out for the 
iron ore and pellets conference: SteelMint Events will be hosting the 5th Indian Iron Ore & Pellet Summit on 3-4 August, 2022 at The Lalit, New Delhi. The conference will discuss key issues being faced by the iron ore and pellets industry in India. The focus will be on market dynamics, policy-related changes, growth challenges and enablers, sustainability and decarbonisation goals, the way forward and many more talk points.