- Active deals from Raipur seen at current offers
- NMDC to auction 200,000 t of iron ore
BigMint’s bi-weekly domestic pellet (Fe 63%) index remained stable at INR 9,850/t ($118/t) DAP Raipur on 23 April 2024 compared to the last assessment on 19 April. This is due to active local deals and increased offers in Odisha. However, Raipur steelmakers preferred purchasing raw materials from local plants to receive quick delivery.
Deals of around 25,000 t of pellets (Fe 63%) were concluded at INR 9,750-9,850/t ($117-118/t) DAP Raipur in this publishing window. Around 20,000 t high-grade pellet (Fe 66%) deals were also recorded recently from Raipur at INR 11,750/t DAP ($141/t).
Pellet prices in Raipur have remained stable despite changes in the market. Buyers are actively purchasing pellets post revision in offers. One buyer has indicated that they have shifted their strategy towards local plants due to increased bids in OMC auctions, which has subsequently driven up pellet prices in Odisha. Furthermore, the recent increase in sponge iron prices has strengthened market sentiment, reinforcing confidence among buyers.
Godawari Power and Ispat Ltd. (GPIL) has kept offers for Fe 63.5% and Fe 66% (+/-0.5) stable at INR INR 10,100/t ($121/t) and INR 11,600/t ($139/t) exw-Raipur, respectively. Other producers’ prices, too, remained stable at INR 9,800/t ($118/t) exw.
A market observer commented that buying interest has remained moderate in the Raipur region over the past few days.
Notably, the consistency extends beyond Raipur, as prices in the neighbourhood have fallen. However, in Odisha pellet prices increased up to INR 300-400/t ($4-5/t) post-OMC auction.
NMDC Chhattisgarh has scheduled over 200,000 t iron ore auction this week. From the Kumhar Marenga Siding, 6,000 t lumps (10-20 mm, Fe 65.5%) and 5,000 t fines (Fe 64%) will be auctioned on 23 April. Other auctions lined up: around 73,100 t ROM (10-150 mm, Fe 65.5%) from Bacheli mines on 24 April; 25,800 t DR-CLO (10-40 mm, Fe 67%), 12,900 t ROM (10-150 mm, Fe 65.5%) and 86,000 t fines (Fe 64%) from Kirandul on 24 April. Floor prices are yet to be declared.
Market snapshots
- Sponge P-DRI prices fall w-o-w: BigMint’s P-DRI (FeM 80%) prices decreased by INR 750/t ($9/t) w-o-w to INR 29,250/t ($351/t) exw on 23 April. On the other hand, prices dropped by INR 250/t ($3/t) d-o-d. Sponge iron prices in major markets across India have dropped by INR 50-500/t due to sluggish market sentiment influenced by a significant downturn in the semi-finished steel segment.
- Billet prices fall w-o-w: Billet prices in Raipur fell by INR 600/t ($7/t) w-o-w to INR 43,300/t ($520/t) exw on 23 April while prices decreased by INR 250/t ($3/t) d-o-d. Dull sentiment dominated the market today as prices fell. Sellers lowered offers to increase sales, but buyers remained quiet.
Rationale
- PELLEX has been derived using data points, i.e., trades, offers, and bids. To download the detailed methodology Click here.
- Two (2) deals were reported so far in this publishing window and taken into account for price calculation and accorded 50% weightage for T1 trade.
- Eleven (11) firm offers, bids, and indicative prices were heard. Seven (7) were taken for price calculation and given the balance 50% weightage.
Outlook:
Pellet prices in the Raipur region may remain supported till NMDC’s iron ore price revision. Some market participants are expecting price revision from NMDC this week.