SteelMint’s bi-weekly domestic pellets (Fe 63%) index, PELLEX, inched down by around INR 100/t to INR 9,800/tonne (t) DAP Raipur today compared to the last assessment on 17 March, 2023. The index has hit close to a 2-month low as INR 9,700/t DAP Raipur levels were seen in mid-January, 2023.
Rationale:
- PELLEX has been derived using data points, i.e. trades, offers and bids. To download the detailed methodology, Click here.
- A Raipur-based pellet maker concluded 10,000 t deal in this publishing window. The deal was recorded in this publishing window and hence, 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.
- Four (4) bids were received out of which three (3) taken into price calculation.
Raipur-based pellets producers kept offers (Fe 63%) stable at INR 9,900-10,500/t ($120-127/t) exw stable against the last assessment. However, some of them offered pellets at INR 9,600/t exw this week.
Buyers did not show much interest for any kind of pellets bulk deal as they shifted for NMDC DR CLO lumps. They also chose pellets from a Chandrapur-based miner. The current financial year is about to end in the next few days. As a result, buyers were at bay for any such deals.
Notably, NMDC has raised prices of fines and lumps (6-40 mm) by INR 200/t and INR 100/t, effective from 21 March, 2023. However, offers of DR CLO remained unchanged at INR 5,820/t (FoR prices from Bacheli complex, excluding royalty, DMF, and NMET) with effect from 21 March, 2023.
SteelMint’s price assessment for sponge P-DRI (FeM 80%) in Raipur fell by INR 1,200/t w-o-w to INR 30,700/t exw. Prices decreased by INR 200/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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