SteelMint’s bi-weekly domestic pellet (Fe 63%) index, PELLEX, stood at INR 8,900/tonne (t) DAP Raipur on 29 July, 2022, up by INR 200/t compared to the last assessment on 26 July. The index edged up due to decent deals followed by a hike in pellet offers. Around 40,000 t of deals were concluded 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 were reported in this publishing window, taken into consideration and hence accorded 50% weightage for T1 trade.
- Eleven (11) firm offers, bids and indicative prices were reported. Around nine (09) were taken for price calculation and given 50% weightage.
- SteelMint received three bids at around INR 8,150-8,950/t DAP but only one was considered for calculation of the index.
As per sources, steel mills either declined production or have enough stocks, which has kept demand for pellets low. They are mostly bidding lower, which is the reason why the market is still witnessing disparity in offers and bid prices. However, hike in sponge prices has supported pellet offers.
Pellet-based DRI (P-DRI, FeM 80%) prices in Raipur increased sharply around INR 2,200/t w-o-w to INR 35,100/t exw. On a daily basis, sponge iron prices increased significantly by around INR 800/t exw.
Indian pellet market overview
- The current assessment for iron ore pellets (Fe 63%) in Odisha’s Barbil fell further by around INR 200/t to INR 7,000-7,200/t loaded on to wagon.
- Iron ore pellet (Fe 63%) prices in Bellary inched down to INR 9,600/t exw today as against INR 9,800/t on 26 July, as per SteelMint assessment.Confirmed deals for 31,000 t were recorded in this publishing window at around INR 9,600-9,650/t exw. The market is down due to weak demand during monsoons.
Region-wise pellet offers and deals:
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