SteelMint’s bi-weekly domestic pellets (Fe 63%) index, PELLEX, decreased by INR 100/t to INR 9,700/tonne (t) DAP Raipur today compared to the previous assessment on 24 March, 2023. One deal of 10,000 t was heard at INR 9,650/t in this publishing window. Other than that market participants were silent as the current financial year is nearing its end.
Rationale:
- PELLEX has been derived using data points, i.e. trades, offers and bids. To download the detailed methodology, Click here.
- One deal was heard in this publishing window. It was 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.
- Two (2) bids were received and both were taken into account for price calculation.
Raipur-based pellet producers kept offers (Fe 63%) at INR 9,600-10,200/t ($116-124/t) exw, down INR 300/t against the last assessment.
As per sources, sponge iron makers are mostly using DR CLO (iron ore lumps) in place of raw pellets on better landed price idea.
SteelMint’s price assessment for sponge P-DRI (FeM 80%) in Raipur fell by INR 350/t w-o-w to INR 30,350/t exw. Prices decreased by INR 150/t d-o-d. Spot trading remained moderate throughout the week across regions. In addition, the ongoing downturn in steel prices also weighed on sponge iron prices this week.
Region-wise offers and deals:
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