- Pellet offers rise by INR 200/t in Raipur
- Buyers remain sidelined amid no deals
BigMint’s bi-weekly domestic pellet (Fe 63%) index remained stable at INR 9,150/t DAP ($109/t) Raipur on 12 March 2024 compared to the last assessment on 8 March. No deals were recorded in this publishing window due to a cautious approach by buyers after price hike by local plants in Raipur.
The local pellet plants from Raipur increased offers by INR 200/t last Saturday. Godawari Power and Ispat Ltd (GPIL) has raised pellet offers by INR 200/t ($2.4/t) to INR 9,400-9,500/t ($113-114/t) exw-Raipur. Other major pellet makers from Raipur have also raised offers by INR 200/t ($2.4/t) to INR 9,100-9,200/t ($109-110/t) exw.
Sources stated that buyers have already had enough bookings and remained in wait-and-watch mode. Few buyers booked material as per need from the Odisha region at INR 200-300/t less than the local offers last week. However, the deals were not confirmed by the buyers.
A trader informed, “The current hike in the pellet offers by pellet producers was not accepted by buyers as there were no bulk deals heard this week. A few prominent plants were using the material for internal consumption and due to this they increased pellet prices last weekend.”
Market highlights
- Sponge P-DRI stable w-o-w: BigMint’s P-DRI (FeM 80%) prices remained largely stable w-o-w at INR 26,550/t exw on 12 March. However, the assessment for sponge iron in Raipur fell by INR 200/t d-o-d today. Trading activity increased on lower offers, especially in the central and eastern regions. Reporting a rise in total trade volumes by 25% d-o-d..
- Billet prices stable w-o-w: Billet prices in Raipur also remained largely stable w-o-w at INR 39,950/t exw on 12 March. However, prices decreased by INR 200/t d-o-d. The index witnessed a significant decline today in semi-finished and finished steel, primarily driven by weak demand and downward sentiments from the northern market. Buying activity and inquiries remained slow, with participants adopting a cautious approach
Rationale
- PELLEX has been derived using data points, i.e., trades, offers, and bids. To download the detailed methodology Click here.
- No deals were reported so far in this publishing window and were not taken into account for price calculation and accorded 0% weightage for T1 trade.
- Fifteen (15) firm offers, bids, and indicative prices were heard. Nine (9) were taken for price calculation and given the balance 100% weightage.
Outlook
Pellet prices in the Raipur market are expected to remain under pressure following the drop in sponge iron and billet prices. However, few sources expect prices to drop in the next few days due to a sharp fall in the overseas market prices.