SteelMint’s bi-weekly domestic pellets (Fe 63%) index, PELLEX, stood at INR 8,400/tonne (t), down by INR 100/t compared to the last assessment on 29 November, 2022. Around 8,000 t of deals were reported in this current publishing window. Trade activities continue to remain limited on subdued deals in the sponge iron segment seen today.
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.
- Two deals were reported in this publishing window for around 8,000 t and accorded 50% weightage for T1 trade.
- Nine (09) firm offers, bids and indicative prices were reported. Eight (08) were taken for price calculation and given the balance 50% weightage.
- SteelMint received two bids at INR 8,150-8,200/t DAP Raipur and both were considered for index calculation in this publishing window.
Raipur-based pellets producers kept their offers at INR 8,400-8,500/t ($103-105/t) exw. Meanwhile, Godawari Power and Ispat’s offers for domestic pellet (Fe63.5%, +/-0.5) stood at INR 8,800/t exw ($108/t) as against INR 9,300/t exw ($114/t) on 19 November. No deals were recorded by SteelMint recently.
Post removal of export duty, a sizeable quantity was bought mainly due to panic in the market fuelled by the possibility of a sudden surge in prices. However, the realisation for pellet exports remains lower for central India-based players. Market participants are still looking for clarity and are in a wait-and-watch mode.
SteelMint’s price assessment for sponge P-DRI (FeM 80%) in Raipur moved up to INR 29,800/t w-o-w as against INR 28,000/t exw on 25 November. However, sponge iron prices decreased by INR 200/t d-o-d as against INR 30,000/t exw on 1 December.
Region-wise pellets offers and deals:
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