SteelMint’s bi-weekly domestic pellet (Fe 63%) index, PELLEX, stood at INR 8,100/tonne (t) DAP Raipur on 16 September, 2022. The index remained stable, with around 13,500 t deals getting concluded in this publishing window.
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.
- Two deals were reported in this publishing window for 13,500 t. Both the deals were considered for calculation and accorded 50% weightage for T1 trade.
- Nine (09) firm offers, bids and indicative prices were reported. Five (05) were taken for price calculation and given another 50% weightage.
- SteelMint received one bid at INR 7,800/t FOR but not considered for calculation of the index.
Raipur-based pellet producers kept the offers stable at INR 7,900-8,000/t ($100-101/t) exw today. Meanwhile, Godawari Power and Ispat Ltd restored its grade of pellets (Fe 63.5%) and offer at INR 8,300/t ($102/t) exw. Earlier, it was offering Fe62.5% at INR 8100/t.
Few transactions are happening in Raipur but the bulk buying interest is still missing. Buyers are holding their buying decisions amid preference for NMDC’s DR CLO.
State-run Odisha Mining Corporation (OMC) has scheduled an auction for iron ore fines and lumps on 19 September, 2022. Around 1.049 mnt of fines and 0.69 mnt of lumps will be put up for auction from OMC’s mines. The miner has decreased the base price for fines by up to INR 200/t whereas the base price for lumps remains unchanged against the last auction held on 19 August.
SteelMint’s price assessment for sponge P-DRI (FeM 80%) in Raipur was down by INR 200/t d-o-d to INR 32,500/t exw. However, prices in Raipur increased by around INR 200/t w-o-w.
Region-wise pellet offers and deals:
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