SteelMint’s bi-weekly domestic pellet index, PELLEX, has moved down by INR 100/t this week to INR 16,200/t, DAP Raipur. Two deals were reported in this publishing window. Two confirmed transactions for 10,000 t and 5,000 t were reported at INR 15,750/t and 15,950/t, DAP Raipur, respectively for Fe 62.5% and Fe 63% respectively.
A couple of Raipur-based pellet producers are still not offering material in the merchant market due to export deals having been concluded by them earlier. The current offer for Fe 62.5%/63% pellet stands at INR 15,500-16,000/t, exw Raipur. Jharsuguda-based producers have kept offers stable. However, with no firm offers floated from Raigarh, plants located in that region were heard exploring options from nearby areas.
A majority of buyers are, however, showing little interest in taking buying decisions owing to the gap in bids and offers. Bids are still quite low compared to prevailing offers. Buyers are not ready to purchase at steep rates as finished steel sales continue to remain subdued. However, a sharp price correction seems unlikely considering tight iron ore availability in Odisha during the rainy season and expiry of two merchant iron ore mines in Aug.
Pellet sponge (P-DRI) prices in Raipur today remained stable at INR 30,800/t, exw.
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 and hence considered for index calculation and kept 50% weightage.
- Five firm offers and indicative prices were reported. Three were from Raipur and the rest from outside the state capital. All the offers were taken for price calculation and given a weightage of 50%.
- SteelMint has also received a bid but did not qualify for calculation of Index.
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