SteelMint’s bi-weekly domestic pellet (Fe 63%) index, PELLEX, stood at INR 8,300/tonne (t) DAP Raipur on 2 September, 2022 down by INR 100/t compared to the last assessment on 30 August, owing to reduced offers by Raipur pellet-makers. The index has fallen to a two-month low, as per data maintained with SteelMint.
Godawari Power and Ispat Ltd (GPIL) has reduced domestic pellet (Fe63%, +-0.5) offers sharply by INR 500/t ($6/t) to INR 8,300/t exw ($105/t) from INR 8,800/t exw ($111/t) on 30 August. Meanwhile, offers from other Raipur-based pellet producers are assessed at INR 8,100-8,200/t exw ($102-103/t).
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 for around 10,000 t in this publishing window, and considered for calculation and accorded 50% weightage for T1 trade.
- Ten (10) firm offers, bids and indicative prices were reported. Nine (09) were taken for price calculation and given 50% weightage.
- SteelMint received two bids at INR 7,650- 8,150/t and only one considered for calculation of the index.
Buyers are still not very active in buying pellets and are waiting for NMDC’s price revision expected anytime soon. At the same time, they are expecting enhanced supply of iron ore post-monsoons.
Pellet-based DRI (P-DRI, FeM 80%) prices in Raipur decreased sharply by around INR 1,900/t w-o-w to INR 33,200/t exw. On a daily basis, prices remained stable.
Indian pellet market overview
- As per current assessment, iron ore pellets (Fe 63%) in Durgapur remain stable at INR 7,100-7,200/t exw.
- Pellet (Fe 63%) prices in Bellary moved down to INR 9,250/t exw on 2 September as against INR 9,400/t on 30 August, as per SteelMint assessment.
Region-wise pellet offers and deals:
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