SteelMint’s bi-weekly domestic pellet (Fe 63%) index, PELLEX, stood at INR 8,800/tonne (t) DAP Raipur on 19 August, 2022, down by around INR 200/t compared to the last assessment on 16 August.
Buyers procured pellets from outside Raipur (West Bengal and other nearby cities) as the offers were much lower compared to the local prices in Raipur. Thus, players expect offers in Raipur to come down in the near term. Jharsuguda-based pellet makers are still offering at INR 8,200/t FOR Raipur.
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.
- Three deals were reported in this publishing window, but only two were taken into consideration and accorded 50% weightage for T1 trade.
- Seven (07) firm offers, bids and indicative prices were reported. Five (05) were taken for price calculation and given 50% weightage.
- SteelMint received one bid at INR 8,450/t for calculation of the index.
Odisha Mining Corporation’s (OMC’s) iron ore fines auction was held today. Out of 14,31,000 mt put on offer, only 3,74,000 t (26%) received bids. The miner decreased the bid price for fines marginally by up to INR 150/t for today’s auction against the last auction on 18 July. Lower capacity utilisation at pellet plants and bid-offer disparities resulted in less participation.
Pellet-based DRI (P-DRI, FeM 80%) prices in Raipur decreased by around INR 150/t w-o-w to INR 34,900/t exw. On a daily basis, prices have been stable in Raipur.
Indian pellets market overview
- As per the current assessment, iron ore pellets (Fe 63%) in Durgapur remained stable at INR 7,300-7,400/t exw.
- Iron ore pellet (Fe 63%) prices in Bellary, Karnataka remained range-bound at INR 10,000/t exw today, as per SteelMint’s assessment.Confirmed deals of 10,000-11,000 t were recorded in this publishing window at around INR 9,900-10,300/t exw.
Region-wise pellet offers and deals:
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