SteelMint’s bi-weekly domestic pellets (Fe 63%) index, PELLEX, stood at INR 7,800/tonne (t) DAP Raipur, stable compared to the last assessment on 8 November, 2022. Around 5,000 t of deals were reported 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.
- One deal was reported for 5,000 t and hence considered in this publishing window and accorded 50% weightage for T1 trade.
- Eleven (11) firm offers, bids and indicative prices were reported. Eight (8) were taken for price calculation and given the balance 100% weightage.
- SteelMint has received three bids in the range of INR 7,000-7,500/t DAP but two bids were taken for calculation in this publishing window.
Raipur-based pellets producers kept their offers (Fe 63%) stable at INR 7,700-7,800/t ($95-97/t) exw against the last assessment. Godawari Power and Ispat Ltd’s (GPIL) domestic pellets (Fe63.5%, +/-0.5) offers stood stable at INR 8,100/t exw ($100/t).
Buyers’ bids were at around INR 7,000-7,500/t DAP due to the continuous fall in sponge iron prices. The market is still looking for clarity on demand in the upcoming days. However, steel makers are mostly procuring lumps from Chandrapur-based miners at a reasonable price against the prevailing pellets offers.
NMDC’s price revision is still talk of the town and is expected to be announced soon.
SteelMint’s price assessment for sponge P-DRI (FeM 80%) in Raipur moved down to INR 29,850/t w-o-w as against INR 30,600/t exw on 4 November. Sponge iron prices fell by INR 250/t d-o-d exw as against INR 30,100/t exw on 10 November.
Region-wise pellets offers and deals:
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