SteelMint’s bi-weekly domestic pellet (Fe 63%) index, PELLEX, stood at INR 8,150/tonne (t) down by INR 250/t compared to the last assessment on 11 October, 2022. The reduction in offers by a couple of pellet players and subdued steel demand in secondary players have kept pellet bids on the lower side.
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 and considered in this publishing window and accorded 50% weightage for T1 trade.
- Ten (10) firm offers, bids and indicative prices were reported. Seven (07) were taken for price calculation and given another 50% weightage.
- SteelMint received two bids also at INR 7,650-7,750/t DAP in this publishing window.
A couple of Raipur-based pellets producers have decreased their offers (Fe63%) by INR 250/t ($3/t) to INR 8,000-8,100/t ($97-98/t) exw from INR 8,200-8,400/t exw ($100-102/t) recently. Limited deals and lower bids have pulled down offers, as per sources. Meanwhile, Godawari Power and Ispat Ltd (GPIL) kept offers stable at INR 8,500-8,600/t exw ($103-104/t).
The bid-offer disparity has continued to limit trade. SteelMint’s price assessment for sponge P-DRI (FeM 80%) in Raipur moved down to INR 31,400/t exw w-o-w, as against INR 31,900/t exw on 7 October. Hence, majority of buyers are holding back purchases in expectation of drop in offers.
Moreover, state PSU miner OMC has scheduled an iron ore auction on 19 October, 2022. Around 0.752 mnt of lump ore and 1.087 mnt of fines will go under the hammer. This is also likely to give a more clear picture on iron ore and pellet prices in eastern India.
Region-wise pellet offers and deals:
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