SteelMint’s bi-weekly domestic pellet (Fe 63%) index, PELLEX, stood at INR 8,700/tonne (t) DAP Raipur on 23 August, 2022, down by around INR 100/t compared to the last assessment on 19 August.
SteelMInt received three deals of around 19,000 t but only 9,000 t was considered for the calculation of index.
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.
- Three deals were reported in this publishing window, but only two were taken into consideration and accorded 50% weightage for T1 trade.
- Eleven (11) firm offers, bids and indicative prices were reported. Six (06) were taken for price calculation and given 50% weightage.
- SteelMint received two bids at INR 8,100- 8,450/t but only one was considered for calculation of the index.
Godawari Power and Ispat Ltd. (GPIL) has reduced domestic pellet offers by INR 200/t ($3/t) to INR 9,100/t exw ($114/t) from INR 9,300/t ($116/t) which prevailed towards the end of last week. Meanwhile, offers from other Raipur-based pellet producers are assessed at INR 8,700-8,800/t ($109-110/t) exw.
As per market sources, buyers are expecting a further cut in offers as compertitive offers are still prevailing in the market. They are also expecting some more improvement in the supply side of iron ore post the end of the monsoon season.
Pellet-based DRI (P-DRI, FeM 80%) prices in Raipur decreased by around INR 1,200/t w-o-w to INR 34,300/t exw. On a daily basis, prices dropped by INR 200/t. However, spot trades spurted as prices fell as nearly 11,600 t deals were reported today.
Indian pellet market overview
- As per current assessment, iron ore pellets (Fe 63%) in Durgapur fell to INR 7,300/t exw.
- Iron ore pellet (Fe 63%) prices in Bellary inched down to INR 9,850/t exw today as against INR 10,000/t on 19 August, as per SteelMint assessment.
Region-wise pellet offers and deals:
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