SteelMint’s bi-weekly domestic pellet (Fe 63%) index, PELLEX, stood at INR 8,000/tonne (t) down by INR 150/t compared to the last assessment on 14 October, 2022. The index fell to over three-month low as per data maintained with SteelMint. Lack of deals and competitive lumps offer from nearby states kept the buyers’ bids lowered.
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.
- No deal was reported in this publishing window and accorded 0% weightage for T1 trade.
- Ten (10) firm offers, bids and indicative prices were reported. Nine (09) were taken for price calculation and given another 100% weightage.
- SteelMint received three bids also at INR 7,650-7,700/t DAP in this publishing window.
Raipur-based pellets producers kept their offers (Fe 63%) stable at INR 8,000-8,100/t ($97-98/t) exw against the last assessment. Meanwhile, Godawari Power and Ispat Ltd (GPIL) kept offers stable at INR 8,500-8,600/t exw ($103-104/t). The paucity of pellets deals and competitive lumps (5-18 mm, Fe 63%) offers from Chandrapur were at around INR 7,500/t FOR Raipur.
Another factor noticed by SteelMint is State-run Odisha Mining Corporation (OMC) scheduled an iron ore auction on 19 October 2022. About 1.037 mnt of fines and 0.752 mnt of lumps from OMC mines will go under the hammer. The miner has decreased the base price for fines by up to INR 300/t for Daitari and Tiring Pahar but increased prices by up to INR 100-150/t for other mines, whereas the base price for lumps remains unchanged.
Most of the buyers are keeping an eye on this auction results post-monsoon as steelmakers are running short of inventory.
SteelMint’s price assessment for sponge P-DRI (FeM 80%) in Raipur moved down to INR 31,100/t exw w-o-w, as against INR 31,700/t exw on 11 October.
Region-wise pellet offers and deals:
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