SteelMint’s bi-weekly domestic pellet (Fe 63%) index, PELLEX, stood at INR 8,750/tonne (t) DAP, increasing sharply by INR 1,150/t compared to INR 7,600/t in the last assessment on 18 November, 2022. Deals for around 100,000 t were concluded following the export duty withdrawal by the government last week. However, only 50,000 t were taken into consideration for calculation of the index.
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 were reported in this publishing window, while three were considered and accorded 50% weightage for T1 trade.
- Seven (7) firm offers, bids and indicative prices were reported. Six (06) were taken for price calculation and given the balance 50% weightage.
- SteelMint received a single bid at around INR 8,150/t DAP, but this was not considered for index calculation in this publishing window.
Raipur-based pellet producers raised their offers up to INR 8,900-9,300/t ($109-114/t) exw from INR 7,500-7,600/t ($92-93/t). Meanwhile, Godawari Power and Ispat further increased domestic pellet (Fe63.5%, +/-0.5) offers by INR 400/t ($5/t) to INR 9,300/t exw ($114/t).
In a highly significant development late on 18 November, the government rolled back export duties on steel and steelmaking raw materials. Export duty of 45% on pellets was reduced to nil. Similarly, the 15% export duty levied on pig iron, hot-rolled and cold-rolled alloy and non-alloyed flat steel products of 600mm or more in width was removed.
SteelMint’s price assessment for sponge P-DRI (FeM 80%) in Raipur moved up by INR 550/t to INR 29,500/t w-o-w as against INR 28,950/t exw a week back. However, sponge iron prices fell by INR 1,000/t d-o-d as against INR 30,500/t exw on 21 November.
Region-wise pellets offers and deals:
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