SteelMint’s bi-weekly domestic pellet (Fe 63%) index, PELLEX, has remained stable at INR 13,100/t DAP Raipur on 2 Nov’21. Around 3,000 t of deals were reported in this publishing window.
Central India-based pellet makers kept their offers stable for the domestic market, sources informed SteelMint. Current offers for pellets (Fe 63%) stand at INR 13,000-13,300/t exw-Raipur.
Offers from sellers in Odisha’s Jharsuguda have come down by INR 100/t to INR 12,000/t exw. Raigarh-based pellet makers kept their offers stable at INR 12,000/t exw.
The market is in the grip of festive fervour and, therefore, limited buying has happened this week so far. Also, buyers are waiting for NMDC’s price announcement for Nov’21.
As per data maintained with SteelMint, NMDC’s iron ore rake movements to Chhattisgarh-based units recorded a rise of 75% to 63 rakes (242,550 t) in Oct’21 compared to 36 (138,600 t) a month ago.
OMC had scheduled an e-auction for iron ore fines today for about 1.013 mn t. The auction received bids for 70% (708,000t) of the total material. The bids, however, stayed flat – at the level of the base price. OMC had reduced base prices for different grades by up to INR 650/t compared to its last auction on 1 Oct.
RB2 coal portside prices correct by INR 1,700/t: South African RB2 (5500 NAR) grade coal was sold at INR 13,500/t at Gangavaram port as against INR 15,200/t on 29 Oct’21.
Demand for sponge iron remained active in Raipur today on decline in offers. SteelMint’s assessment for sponge P-DRI (FeM 80%) fell by INR 300/t to INR 32,700/t exw. Around 8,300 t deals were confirmed at INR 32,600-32,700/t on exw and FOR Raipur basis.
Indian pellet market overview: Eastern India–based pellet makers have slashed pellet (Fe 63%) prices by around INR 500-600/t against last week. Bellary iron ore pellet (Fe 63%) prices have fallen to INR 12,000-12,100/t as against INR 12,150/t assessed on 29 Oct’21. Deals for 3,000 t were heard at INR 12,200/t exw.
However, offers in western India have remained unchanged.
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..
- One deal was reported in this publishing window and therefore considered as T1 trade for calculation of the index, both accorded 50% weightage.
- Ten (10) firm offers and indicative prices were reported. Four were from Raipur and the rest from outside the state capital. Six (06) were taken for the price calculation and given a weightage of 50%.
- SteelMint has received no bid therefore not considered for calculation of the index.
Region-wise pellet offers and deals:
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