SteelMint’s bi-weekly domestic pellet (Fe 63%) index, PELLEX, decreased by INR 200/t to INR 13,800/t DAP Raipur on 19 Oct’21. Trade activities continues to remain limited so far this week also. Around 2,000-3,000 t pellet deal was done at INR 13,700/t exw-Raipur.
Central India-based pellet makers have kept offers stable for the domestic market, sources informed SteelMint. Current offers for pellets (Fe 63%) stand at INR 13,700-14,000/t exw-Raipur.
Jharsuguda offer opened with hike at INR 13,500/t exw. However, Raigarh based pellet maker has no offer today.
Buying interest in the merchant market is still very sluggish and the buyers quoting quite below the prevailing market offer. However, as per the SteelMint sources, pellet makers from Odisha offering at around INR 13,500/t FOR Raipur but no deal heard to be concluded yet.
P-DRI (FeM 80%) prices in Raipur fell by INR 100/t to INR 35,200/t, exw, today. Lower bids amidst dull buying continued to weigh on sponge iron prices. On a weekly basis, prices have also moved down by INR 300/t.
Indian pellet market overview:
Indian pellet market of other than Raipur and Bellary region have increased offers at around INR 200-400/t, however few were not offering in the domestic market actively.
SteelMint’s assessment for Barbil iron ore pellet (Fe 63%) up by around INR 400/t to INR 12,600-12,700/t loaded on to wagon.
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.
One deal was reported for around 2,000-3,000 t and considered as T1 trade for calculation of the index, given 50% weightage.
Nine (9) firm offers and indicative prices were reported. Four were from Raipur and the rest from outside the state capital. Six were taken for the price calculation and given a weightage of 50%.
SteelMint received one bid at INR 13,150/t exw but could not qualified for the calculation of the index.
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