SteelMint’s bi-weekly domestic pellet (Fe 63%) index, PELLEX, stood at INR 8,100/tonne (t) DAP Raipur on 20 September, 2022. The index remained stable, with around 25,000 t of deals concluded but only 10,000 t of deals were taken into consideration 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 25,000 t. Both the deals were considered for calculation 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 another 50% weightage.
- SteelMint received three bids at INR 7,700-7,800/t FOR but these were 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.
In the last few weeks, some deals were concluded in the Raipur market. However, buyers are still reluctant to buy bulk pellets and expecting a fall in sponge prices. Therefore, they are mostly opting to adopt a wait-and-watch mode.
Odisha Mining Corporation’s (OMC’s) iron ore fines auction received bids for 0.728 mnt, or 69% of the total quantity put on offer (1.049 mnt). The bid price for fines increased by up to INR 350/t against the last auction on 19 August, 2022, as per SteelMint sources. In another iron ore lump auction, bids were received for 387,000 t, or 56% of the total quantity put on offer (690,000 t). The bid prices in that auction fell by up to INR 600/t.
SteelMint’s price assessment for sponge P-DRI (FeM 80%) in Raipur was down by INR 600/t d-o-d to INR 31,900/t exw. The prices in Raipur decreased by around INR 400/t w-o-w.
Region-wise pellet offers and deals:
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