SteelMint’s bi-weekly domestic pellet (Fe 63%) index, PELLEX, stood at INR 8,800/tonne (t) DAP Raipur on 22 July 2022, down INR 100/t compared to the last assessment on 19 July. Only one deal was heard for Fe 62/63 at around 4,000-5,000 t reported at INR 8,650/t DAP Raipur in this publishing window.
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 deals was reported and taken into consideration in this publishing window and hence accorded 50% weightage for T1 trade.
- Eight (08) firm offers, bids and indicative prices were reported. Around six (06) were taken for price calculation and given 50% weightage.
- SteelMint received two bids at around INR 7,900-8,150/t but considered only one for calculation of the index.
The drop in sponge iron and billet prices w-o-w led buyers to lower their bids. Buyers are reluctant to buy as they are expecting some price cut in the coming days. Therefore, some disparity was also seen in the bids and offers.
Pellet-based DRI (P-DRI, FeM 80%) prices in Raipur were witnessed to have fallen w-o-w by around INR 2,000/t to INR 34,900/t exw. On a daily basis, sponge iron prices wer stable today at INR 32,900/t exw.
Indian pellet market overview-
- The current assessment for Odisha’s Barbil iron ore pellets (Fe 63%) is still at INR 7,500/t loaded on to wagon.
- Iron ore pellet (Fe 63%) prices in Bellary, Karnataka remained range bound at INR 9,900/t exw today, as per SteelMint’s assessment.
Region-wise pellet offers and deals:
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