SteelMint: PELLEX remains stable on active trade deals

SteelMint’s bi-weekly domestic pellet (Fe 63%) index, PELLEX, stood at INR 8,000/tonne (t) DAP Raipur on 1 July, 2022 – stable compared to the last assessment on 28 June. Around 29,000 t of pellet (Fe 62/Fe 63%) deals were reported at around INR 7,950-8,350/t DAP Raipur and all were taken into consideration 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.
• Four deals totalling 29,000 t were 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 seven (07) were taken for price calculation and given 50% weightage.
• SteelMint received two bids at around INR 7,150- 7,500/t exw Raipur, and only one was considered for calculation of the index.

Raipur-based pellet makers kept the offers stable at INR 7,800-7,900/t exw ($99-100/t). Price assessment for Jharsuguda stands at INR 7,400/t exw.

Pellet-based DRI (P-DRI, FeM 80%) prices in Raipur stood at INR 32,900/t exw, stable w-o-w. On a daily basis, sponge iron prices increased by around INR 200/t.

Indian pellets market overview:

Pellet offers across regions increased on improved trade in sponge iron and billets so far this week.

• Current assessment for Odisha’s Barbil iron ore pellets (Fe 63%) stands at INR 7,500/t loaded on to wagon. However, no active deals were reported this week.
• Iron ore pellet (Fe 63%) prices in Bellary increased to INR 9,200/t exw today as against INR 9,150/t on 28 June, as per SteelMint’s assessment. Confirmed deals of 6,000 t were recorded in this publishing window at around INR 9,000-9,200/t exw. Lack of iron ore inventory in Karnataka amidst lack of clarity on sales and limited fresh supply kept pellet demand supported.

Region-wise pellet offers and deals:

To know more about the Indian iron ore market outlook, watch out for the 
Iron ore and pellets conference: SteelMint Events will be hosting the 5th Indian Iron Ore & Pellet Summit on 3-4 August, 2022 at The Lalit, New Delhi. The conference will discuss key issues being faced by the iron ore and pellets industry in India. The focus will be on market dynamics, policy-related changes, growth challenges and enablers, sustainability and decarbonisation goals, the way forward and many more talk points.