SteelMint’s bi-weekly domestic pellets (Fe 63%) index, PELLEX, stood at INR 9,300/tonne (t), inching up by INR 50/t compared to the last assessment on 23 December, 2022. Around 33,000 t of deals were reported in this current 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 (04) deals were reported and three (03) were taken into consideration in this publishing window and accorded 50% weightage for T1 trade.
- Ten (10) firm offers, bids and indicative prices were reported. Nine (09) were taken for price calculation and given the balance 50% weightage.
- SteelMint received two bids at INR 9,150-9,200/t DAP Raipur which was considered for index calculation in this publishing window.
Raipur-based pellets producers kept their offers stable at INR 9,000-9,200/t ($109-111/t) exw. Meanwhile, Godawari Power and Ispat’s offers for domestic pellets (Fe63.5%, +/-0.5) stood at INR 9,500/t exw ($115/t).
Buyers have now started showing interest in pellets buying. Also, the gap between bids and offers has narrowed down in the market which resulted in few deals getting concluded in the last few days. However, several market participants are waiting for NMDC’s price revision which is round the corner and expected to be released soon.
SteelMint’s price assessment for sponge P-DRI (FeM 80%) in Raipur moved up to INR 32,000/t w-o-w as against INR 30,550/t exw on 20 December. Sponge iron prices increased by INR 300/t d-o-d as against INR 31,650/t exw on 26 December.
Region-wise pellets offers and deals:
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