SteelMint’s bi-weekly domestic pellet (Fe 63%) index, PELLEX, stood at INR 8,100/tonne (t) DAP Raipur on 6 September, 2022 down by another INR 200/t compared to the last assessment on 2 September.
As per market sources, a few deals from nearby regions were concluded for Raipur but owing to lack of confirmation from sellers, only 3,000 t of pellet deals were taken for calculation in this publishing window. Competitive landed offers, and drop in sponge prices have continued to keep Raipur pellet offers under pressure.
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.
- Few deals were reported in this publishing window. Out of these, only one was considered for calculation and accorded 50% weightage for T1 trade.
- Eight (08) firm offers, bids and indicative prices were reported. Six (06) were taken for price calculation and given another 50% weightage.
- SteelMint received two bids at INR 7,800-8,100/t FOR and only one considered for calculation of the index.
Buyers are still not very active, they are in a wait-and-watch mode, looking for further development in the market. Some buyers, while talking to SteelMint, revealed that they have sufficient stocks for this month and are getting material from previous orders too.
Moreover, drop in sponge prices have weighed down bids for pellets. Pellet-based DRI (P-DRI, FeM 80%) prices in Raipur dropped by around INR 900/t, w-o-w to INR 32,600/t exw. On a daily basis, prices were down by around INR 200/t.
In the NMDC iron ore auction from Bacheli mines, Chhattisgarh today, around 4,000 t of iron ore lumps were booked (10-20mm, Fe 65.5%-indicative). According to market sources, the entire quantity was booked at a base price. NMDC’s price revision is around the corner and market participants are eagerly waiting for September delivery prices.
Region-wise pellet offers and deals:
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