SteelMint’s bi-weekly domestic pellet (Fe 63%) index, PELLEX, stood at INR 8,100/tonne (t) DAP Raipur on 13 September, 2022. The index remained stable, with around 42,500 t deals getting concluded in this publishing window.
Last week, one pellet producer in Raipur had lowered offers. However, after active deals were concluded the seller increased offers today by around INR 200/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.
- Three deals were reported in this publishing window for 42,500 t. All three were considered for calculation and accorded 50% weightage for T1 trade.
- Nine (09) firm offers, bids and indicative prices were reported. Seven (07) were taken for price calculation and given another 50% weightage.
- SteelMint received two bids at INR 7,800/t FOR but these were not considered for calculation of the index.
Raipur-based pellet producers increased their offers for Fe63% material by INR 200/t ($2.5/t) to INR 7,900-8,000/t ($100-101/t) exw from INR 7,700-7,800/t exw ($97-99/t). Meanwhile, Godawari Power and Ispat Ltd. is offering pellets (Fe 62.5%) at INR 8,100/t ($102/t) exw.
Improved trades were seen amidst lower offers and sponge iron price recovery. However, sellers opined that pellet prices have largely bottomed out and there is little scope for any significant correction.
OMC’s iron ore auction is round the corner and it may be notified anytime this week. Buyers seem to be waiting for the auction.
SteelMint’s price assessment for sponge P-DRI (FeM 80%) in Raipur rose by INR 300/t d-o-d to INR 32,500/t exw. 10,700 t of FeM 78-80% P-DRI deals were recorded today, 65% of which were concluded by Odisha- and Raigarh-based plants. However, prices in Raipur dropped further by around INR 100/t w-o-w.
Region-wise pellet offers and deals:
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