SteelMint: PELLEX rises INR 100/t in recent deals as sponge prices rally

SteelMint’s bi-weekly domestic pellet (Fe 63%) index, PELLEX, stands at INR 10,800/tonne (t) DAP Raipur on 7 Jan’22, up INR 100/t against the last assessment on 4 Jan’22. Around 17,000 t deals were reported 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.
• Two deals were reported in this publishing window and considered as T1 trade for calculation of the index; accorded 50% weightage.
• Nine (09) firm offers and indicative prices were reported. Six (06) were taken for price calculation and given 50% weightage.
• SteelMint received one bid at INR 10,650-10,700/t DAP Raipur which was 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, largely stable against 4 Jan.

As per sources, the price gap between bids and offers has narrowed in the market. A few deals were concluded recently at the prevailing offers.

The Indian pellet export market has gained momentum following the hike in global iron ore prices. Eastern- and southern India-based players concluded over 270,000 t of export deals in the last two days.

SteelMint’s India pellet export index (Fe 64%, 3% Al, FOB east coast) increased by $2.5/tonne (t) on a w-o-w basis to $136.5/t.

Also, SteelMint’s assessment for pellet-based DRI (P-DRI) rose by INR 700/t d-o-d to INR 31,200/t exw-Raipur for FeM 80% material. On  a w-o-w basis, too, prices increased by around INR 200-300/t. Prices remain strong on slight supply shortage, active demand and surge in coal and steel billet offers.

Indian pellet market overview: The Indian pellet market remained stable across regions except Bellary where offers moved up slightly.

SteelMint’s assessment for iron ore pellet (Fe 63%) prices in Bellary increased to INR 10,250/t exw today against INR 10,150/t exw on 4 Jan. Confirmed deals for 17,000 t were recorded in this publishing window at around INR 10,000-10,450/t exw.

Region-wise pellet offers and deals: