SteelMint’s bi-weekly domestic pellets (Fe 63%) index, PELLEX, stood at INR 7,800/tonne (t) DAP Raipur, stable compared to the last assessment on 1 November, 2022 despite lack of demand and fall in sponge iron prices.
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 hence not considered in this publishing window. Thus, accorded 0% weightage for T1 trade.
- Nine (9) firm offers, bids and indicative prices were reported. Seven (7) were taken for price calculation and given the balance 100% weightage.
- SteelMint has received two bids but taken only one for calculation in this publishing window.
Raipur-based pellets producers kept their offers (Fe 63%) stable at INR 7,700-7,800/t ($94-95/t) exw against the last assessment. Meanwhile, Godawari Power and Ispat Ltd’s (GPIL) domestic pellets (Fe63.5%, +/-0.5) offers stood at INR 8,100/t exw ($99/t).
Buyers’ bids for pellets are going down to around INR 7,300-7,350/t DAP on the continued fall in sponge iron prices. The market trend still remains unclear. However, participants are eagerly waiting for NMDC price revision which is round the corner and expected to be released anytime next week.
NMDC has scheduled two iron ore auctions from Chhattisgarh on 5 November 2022. The first is for 214,200 t of both fines and lumps (Fe64-67%, indicative) from Bacheli mines, while the second is for 134,400 t of fines and lumps (Fe64-65.50%, indicative) from Kirandul mines.
SteelMint’s price assessment for sponge P-DRI (FeM 80%) in Raipur moved down to INR 30,600/t w-o-w, as against INR 31,400/t exw on 28 October. Sponge iron prices moved down by INR 400/t d-o-d exw as against INR 31,000/t exw on 3 November.
Region-wise pellets offers and deals:
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