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 4 November, 2022. Trades continue to remain muted on bid-offer disparities and the drop 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.
- Ten (10) firm offers, bids and indicative prices were reported. Six (6) were taken for price calculation and given the balance 100% weightage.
- SteelMint has received only one bid at INR 7,150/t FOR but not taken for calculation in this publishing window.
Raipur-based pellets producers kept their offers (Fe 63%) stable at INR 7,700-7,800/t ($94-96/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 inched down further to around INR 7,150/t DAP due to the continued fall in sponge iron prices. Demand for pellets almost dried up owing to the falling bids from buyers who are mainly waiting for NMDC’s iron ore price announcement expected shortly.
SteelMint’s price assessment for sponge P-DRI (FeM 80%) in Raipur moved down to INR 30,100/t w-o-w as against INR 31,100/t exw on 1 November. Sponge iron prices moved down by INR 200/t d-o-d exw as against INR 30,300/t exw on 7 November.
Region-wise pellets offers and deals:
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