SteelMint’s bi-weekly domestic pellet (Fe 63%) index, PELLEX, stood at INR 8,400/tonne (t) DAP Raipur on 30 August, 2022 stable compared to the last assessment on 26 August, owing to limited deals reported. Around 10,000-15,000 t of pellet deals were reported in this publishing window.
Godawari Power & Ispat Ltd (GPIL) has reduced domestic pellet offers by INR 300/t ($4/t) to INR 8,800/t exw ($110/t) from INR 9,100/t exw ($114/t) which prevailed last week. Meanwhile, offers from other Raipur-based pellet producers are assessed at INR 8,400-8,500/t exw ($105-107/t).
Buyers are mostly focusing on NMDC’s price revision which is around the corner for next month’s deliveries. NMDC had scheduled two iron ore auctions for DR CLO, ROM, Baila lump and fines from Chhattisgarh today. The first was for 159,600 t of both fines and lumps (Fe64-67%, indicative) from the Bacheli mines, while the second was for 134,400 t of fines and lumps (Fe64-65.50%, indicative) from the Kirandul mines. According to market sources, the entire quantity of 16,800 t of DR-CLO has been booked at INR 5,587/t against the set base price of INR 4,957/t (FoR , royalty, DMF and NMET extra). One lot of Baila lumps was booked at a base price of INR 4,131/t.
At the same time, they are also expecting enhanced supply of iron ore post-monsoons, which may result in price correction in the near term.
Indian pellet market overview
- As per current assessment, iron ore pellets (Fe 63%) in Durgapur stable to INR 7,100-7,200/t exw.
- Iron ore pellet (Fe 63%) prices in Bellary moved down to INR 9,400/t exw today as against INR 9,600/t on 26 Aug, as per SteelMint assessment.
Region-wise pellet offers and deals:
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