SteelMint: PELLEX inches up even amid subdued trading

SteelMint’s bi-weekly domestic pellet (Fe 63%) index, PELLEX, stood at INR 8,400/tonne (t) DAP Raipur on 11 October, 2022, up INR 100/t compared to the last assessment on 7 October. The index edged up due to the marginal hike in pellet offers from outside Raipur. However, no deals were concluded 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.
• No deal was reported in this publishing window, therefore accorded 0% weightage for T1 trade.
• Five (05) firm offers, bids and indicative prices were reported. Two (02) were taken for price calculation and given 100% weightage.

As per sources, buyers in this publishing window were silent due to increased offers. Godawari Power and Ispat Ltd (GPIL) kept offers stable at INR 8,500-8,600/t exw ($103-105/t).

Pellet-based DRI (P-DRI, FeM 80%) prices in Raipur inched down by around INR 50/t w-o-w to INR 31,700/t exw. On a daily basis, sponge iron prices decreased by around INR 200/t. Not many firm bids for pellets were heard in the market as a few buyers reportedly booked 50,000 t (5-18mm, Fe 63%) of iron ore lump at INR 8,100-8,300/t FOR Raipur from a Chandrapur-based miner recently.

Notably, India’s largest miner, NMDC, announced a rollover in prices for October supplies. NMDC fixed prices for lump iron ore (65.5%, 6-40mm) at INR 4,100/t, DR CLO (Fe 67%, 10-40mm) at INR 4,920/t and iron fines (64% – 10mm) at INR 2,910/t (FOR prices, excluding royalty, DMF and NMET)

Indian pellet market overview

• The current assessment for iron ore pellets (Fe 63%) in Odisha’s Barbil stood stable at INR 7,200-7,300/t loaded on to wagon.
• Iron ore pellet (Fe 63%) prices in Bellary inched up to INR 8,600/t exw on 11 October as against INR 8,500/t on 7 October, as per SteelMint assessment. Confirmed deals of 6,000 t were recorded in this publishing window at INR 8,400-8,800/t exw. Pellet-based sponge iron, P-DRI, prices moved up to INR 32,150/t exw as against INR 31,950/t on 7 October.

Region-wise pellet offers and deals: