SteelMint’s bi-weekly domestic pellets (Fe 63%) index, PELLEX, inched down by around INR 50/t to INR 9,950/tonne (t) DAP Raipur today compared to the last assessment on 10 March, 2023.
No deal was reported in this publishing window as market participants showed least interest to buy pellets at the current offer. However, buyers are looking for the upcoming OMC auction in Odisha on 16 March, 2023.
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 in this publishing window and hence, accorded 0% weightage for T1 trade.
- Eleven (11) firm offers, bids and indicative prices were reported. Eight (8) were taken for price calculation and given the balance 100% weightage.
- Three (3) bids were received out of which two (2) were taken into price calculation.
Raipur-based pellets producers kept their offers (Fe 63%) stable at INR 9,800-9,900/t ($119-120/t) exw against the last assessment. Meanwhile, Godawari Power and Ispat Ltd (GPIL) kept offers stable at INR 10,500/t exw ($127/t).
As per the market participants, some buyers have shifted to use Chandrapur-based iron ore instead of pellets. This has led the pellets market to a silent mode. A Maharashtra-based iron ore miner has lowered lumps offers (5-18mm, Fe 63%) at INR 8,700-8,800/t FOR Raipur. The miner has also resumed fines (Fe 63%) offer at INR 6,500-6,600/t FoR Raipur recently.
SteelMint’s price assessment for sponge P-DRI (FeM 80%) in Raipur fell by INR 300/t w-o-w to INR 31,900/t exw. Spot trading remained moderate throughout the week across regions. Market participants are cautious about price movements and hence are trying to avoid bulk bookings. Also, the ongoing downturn in steel prices, too, has weighed on sponge iron prices.
Region-wise offers and deals:
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