SteelMint’s bi-weekly domestic pellets (Fe 63%) index, PELLEX, stood at INR 8,500/tonne (t), down by INR 250/t compared to the last assessment on 25 November, 2022. Trades continued to remain muted on bid-offer disparities.
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. Eight (08) were taken for price calculation and given the balance 100% weightage.
- SteelMint received two bids at INR 7,650-8,150/t DAP Raipur and considered only one for index calculation in this publishing window.
Raipur-based pellets producers have reduced their offers by up to INR 8,400-8,500/t ($103-104/t) exw from INR 8,900-9,000/t ($109-110/t) exw. Meanwhile, Godawari Power and Ispat has decreased domestic pellets (Fe63.5%, +/-0.5) offers by INR 500/t ($6/t) to INR 8,800/t exw ($108/t) from INR 9,300/t exw ($114/t) on 19 November. No deals were recorded by SteelMint recently.
Pellet producers have reduced their offers because sales have been slow on limited buying interest. Post-removal of the export duty, a decent quantity was bought in panic by the buyers. However, pellet exports realization is still lower for central India-based players. Also, the weekly fall in sponge and semi-finished offers in the domestic market led buyers away from booking pellets. Market participants are still looking for market clarity and hence are in a wait-and-watch mode.
SteelMint’s price assessment for sponge P-DRI (FeM 80%) in Raipur moved down to INR 28,700/t w-o-w as against INR 29,500/t exw on 22 November. Sponge iron prices increased by INR 400/t d-o-d as against INR 28,300/t exw on 28 November.
Region-wise pellets offers and deals:
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