SteelMint’s bi-weekly domestic pellet (Fe 63%) index, PELLEX, stood at INR 9,200/tonne (t) DAP Raipur on 12 August, 2022, stable compared to the last assessment on 9 August. A small quantity deal was concluded for 2,000-3,000 t in this publishing window. Buyers are mostly not interested in pellets, hence, no major deal done so far this week.
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 deal was reported in this publishing window, hence taken into consideration and accorded 50% weightage for T1 trade.
- Seven (07) firm offers, bids and indicative prices were reported. Five (05) were taken for price calculation and given 50% weightage.
- SteelMint received no bids for calculation of the index.
As per sources, buyers were silent owing to volatile market conditions and production cuts led to the demand fall. India’s largest merchant iron ore mining company, NMDC, has raised prices of lump ore by up to INR 200-240/t and fines by INR 100/t, effective from 11 August, SteelMint learnt from credible sources.
Pellet-based DRI (P-DRI, FeM 80%) prices in Raipur increased by around INR 250/t w-o-w to INR 35,050/t exw. On a daily basis, prices have been increased by around INR 350/t.
Indian pellet market overview
- The current assessment for iron ore pellets (Fe 63%) in Durgapur fell further to INR 7,300-7,400/t exw.
- 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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