SteelMint’s bi-weekly domestic pellets (Fe 63%) index, PELLEX, stood at INR 10,100/tonne (t) DAP Raipur, inching down by INR 50/t compared to the last assessment on 3 February, 2023. No deal was reported in the current publishing window. Despite the drop in offers by players, buyers are not very aggressive in booking material due to the fall in sponge and billet prices.
Rationale:
- PELLEX has been derived using data points, i.e. trades, offers and bids. To download the detailed methodology, Click here.
- No deal was reported hence not considered in this publishing window and accorded 0% weightage for T1 trade.
- Twelve (12) firm offers, bids and indicative prices were reported. Nine (9) were taken for price calculation and given the balance 100% weightage.
- SteelMint received two bids at INR 9,750/t DAP Raipur which were not considered for index calculation in this publishing window.
Raipur-based pellet producers have reduced their offers by INR 300/t ($4/t) to INR 9,900-10,200/t ($120-123/t) exw from INR 10,100-10,200/t ($122-123/t) exw. Meanwhile, Godawari Power and Ispat Limited (GPIL) has decreased domestic pellets (Fe63.5%, +/-0.5) offers by INR 300/t ($4/t) to INR 10,200/t exw ($123/t) from INR 10,500/t exw ($127/t) on 16 January 2023.
Due to a sluggish market and low buying interest, pellet offers got reduced today. The drop in domestic sponge offers kept buyers from booking pellets and they are expecting further price cuts in the upcoming days, as per market participants.
SteelMint’s price assessment for sponge P-DRI (FeM 80%) in Raipur moved down by INR 450/t w-o-w to INR 31,600/t exw. Sponge iron prices decreased by INR 150/t d-o-d.
Region-wise offers and deals:
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