SteelMint’s bi-weekly domestic pellets (Fe 63%) index, PELLEX, stood at INR 9,700/tonne (t) DAP Raipur, inching down by INR 100/t compared to the last assessment on 6 January, 2023. No deals were reported in this current publishing window due to decent inventories with buyers while sponge iron prices also fell.
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 hence not considered 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 only one bid at INR 9,350/t DAP Raipur which was not considered for index calculation in this publishing window.
Raipur-based pellets producers kept their offers at INR 9,500-9,800/t ($115-118/t) exw. Godawari Power and Ispat’s offers for domestic pellets (Fe 63.5%, +/-0.5) stood at INR 9,800/t exw ($118/t).
OMC’s iron ore auction is round the corner, which is likely to bring more clarity on Odisha’s iron ore prices. As per market participants, OMC may hike the base price in the upcoming auction looking at the shortage in high-grade material.
Meanwhile, the buyer-seller gap in the market has widened and the reason why both were silent and mostly in wait-and-see mode in today’s market.
SteelMint’s price assessment for sponge P-DRI (FeM 80%) in Raipur fell to INR 31,700/t w-o-w as against INR 32,400/t exw on 3 January. Sponge iron prices decreased by INR 300/t d-o-d as against INR 32,000/t exw on 9 January.
Region-wise pellets offers and deals:
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