- Pellet offers drop INR 200-300/t
- Bulk deals recorded at reduced offers
- Sponge iron, billet offers increase
BigMint’s bi-weekly domestic pellet (Fe 63%) index inched down by INR 50/t ($0.5/t) to INR 9,150/t DAP ($108/t) Raipur on 2 April 2024 compared to the last assessment on 29 March. Around 28,000 t pellet (Fe 63/63.5%) deals were recorded at INR 9,250-9,350/t ($111-112/t) DAP Raipur in this publishing window after prices dropped by local pellet makers. According to sources, a Raipur pellet producer recorded around 50,000 t of higher grade pellet (Fe66%) deal at INR 10,700/t ($128/t) exw yesterday.
Pellet producers in the Raipur region reduced prices by INR 200-300/t ($2.4-4/t) recently amid the NMDC iron ore price decline and subdued pellet export market which increased supply in the domestic market against demand. Following the drop in offers, buyers expect more bulk deals in the coming days.
Godawari Power and Ispat Ltd (GPIL) has reduced pellet offers for Fe 63.5% and Fe 66% (+/-0.5) by INR 300/t ($4/t) to INR 9,200/t ($110/t) and INR 10,700/t ($128/t) exw-Raipur, respectively. Other pellet makers from Raipur have also cut offers by around INR 200/t ($2.4/t) to INR 9,000/t ($110/t) exw today. However, one prominent pellet seller kept offers stable at INR 9,100-9,200/t exw.
A trader from the central-eastern region said, “Top pellet exporters from the eastern region are looking to sell their material in the Raipur region.”
Sponge and billet prices in the region have increased significantly in the last two days on the back of increased prices post coal auction concluded recently as per the sources informed BigMint.
- Sponge P-DRI prices up w-o-w: BigMint’s P-DRI (FeM 80%) prices increased by INR 1,050/t ($13/t) w-o-w to INR 27,750/t ($333/t) exw on 2 April. Meanwhile, prices increased by INR 250/t ($3/t) d-o-d.
- Billet prices rise w-o-w: Billet prices in Raipur rose by INR 1,150/t ($14/t) w-o-w to INR 40,950/t ($481/t) exw on 2 April. Additionally, prices increased by INR 450/t ($6/t) d-o-d. The index remained mild since sufficient bookings had already been made in the previous trading session at lower offers, causing buyers to postpone buying at higher offers.
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 but only one taken into account for price calculation and accorded 50% weightage for T1 trade.
- Seventeen (17) firm offers, bids, and indicative prices were heard. Fourteen (14) were taken for price calculation and given the balance 50% weightage.
Outlook
Pellet prices in the Raipur market are expected to increase following the hike in sponge iron and billet prices in the region. As a prominent pellet-maker is keeping sales closed, prices may edge up further.