SteelMint’s bi-weekly domestic pellet (Fe 63%) index, PELLEX, stood at INR 9,000/tonne (t) DAP Raipur on 16 August, 2022, down by around INR 200/t compared to the last assessment on 12 August.
Buyers are looking to procure pellets from outside Raipur (West Bengal) as the offers are lower compared to the local prices here. Jharsuguda-based pellet makers are now offering at INR 8,200/t FOR Raipur. Similarly, Kharagpur-based pellet makers are now offering at INR 6,600-6,800/t exw.
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.
- One deal was reported in this publishing window, and was hence taken into consideration and accorded 50% weightage for T1 trade.
- Seven (07) firm offers, bids and indicative prices were reported. Six (06) were taken for price calculation and given 50% weightage.
- SteelMint received no bids for calculation of the index.
State-run Odisha Mining Corporation (OMC) has recently announced base prices for iron ore. They have decreased the base price for fines by up to INR 600/t whereas the base price for lumps remains unchanged against the last auction held on 18 July. The state-run miner has scheduled an auction on 19 August, where around 0.96 mnt of iron ore lumps and 1.43 mnt of fines will be put up for auction.
Pellet-based DRI (P-DRI, FeM 80%) prices in Raipur increased by around INR 250/t w-o-w to INR 35,050/t exw. On a daily basis, prices have been increased by around INR 350/t.
Indian pellets market overview
- As per the current assessment, iron ore pellets (Fe 63%) in Durgapur remained stable at INR 7,300-7,400/t exw.
- Iron ore pellet (Fe 63%) prices in Bellary inched up to INR 10,000/t exw today as against INR 9,900/t on 12 August, as per SteelMint’s assessment. However, no deals were recorded in this publishing window.
Region-wise pellet offers and deals:
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