SteelMint’s bi-weekly domestic pellet (Fe 63%) index, PELLEX, stands at INR 10,700/tonne (t) DAP Raipur on 04 Jan’22, stable against the last assessment on 31 Dec’21. No deal was heard 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.
- No deal was reported in this publishing window as T1 trade for calculation of the index, and accorded 0% weightage.
- Eleven (11) firm offers and indicative prices were reported. Seven (07) were taken for price calculation and given 100% weightage.
- SteelMint received three bids at INR 10,150/t DAP Raipur and hence they were not considered for calculation of the index.
Central India-based pellet-makers kept offers stable at INR 10,700-11,000/t exw. Price indications in Jharsuguda, Odisha are at INR 9,800-9,900/t exw, stable against 31 Dec’21.
Pellet demand in Raipur is still weak as deals have mostly dried up after active bookings made last month and given enough inventories with sponge players.
As per sources, buyers in Raipur are still receiving despatches of old deals and they are not in a hurry to book fresh quantities. In addition, there is disparity in bids and offers. NMDC’s price cut announced last week is another reason that has weakened bookings of pellets by domestic players.
SteelMint’s assessment for pellet-based DRI (P-DRI) rose by INR 100/t to INR 30,800/t exw-Raipur for FeM 80% material. However, on a w-o-w basis, prices have remained stable.
Indian pellet market overview: The Indian pellet market remained stable across regions with scant deals reported in this publishing window except bellary pellet offers inching down.
SteelMint’s assessment for iron ore pellet (Fe 63%) prices in Bellary decreased to INR 10,150/t exw today against INR 10,300/t exw on 31 Dec. Confirmed deals for 5,000 t were recorded at around INR 10,300/t exw few days back.
Region-wise pellet offers and deals:
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