SteelMint’s bi-weekly domestic pellet (Fe 63%) index, PELLEX, increased by INR 1,400/t to INR 12,300/t DAP Raipur on 1 Oct’21. Around 70,000 t of confirmed deals have been concluded in the Raipur market during this assessment period.
Raipur-based pellet players raised offers by around INR 1,400-1,500/t in the last few days to INR 13,000/t exw. Buoyant sentiments in the sponge iron and semi-finished steel market have enabled producers to raise offers, SteelMint notes.
SteelMint came to learn that an Odisha-based producer sold around 20,000-30,000 t pellets to Raipur at INR 11,700/t on FOR basis, while no offers were heard from Jharsuguda. However, a Raigarh-based pellet maker increased offers by INR 1,400/t to INR 12,000/t exw.
Raipur sponge P-DRI (FeM 80%) prices rose by INR 1,000/t d-o-d to INR 34,000/t exw. Higher coal prices boosted offers; however, buyers were sceptical and booked material as per requirements. On a weekly basis, prices have moved up by INR 3,700/t.
Indian pellets market overview:
Indian pellet prices have moved up in the majority of regions in this publishing window and other pellet players are likely to announce fresh offers on 04 Oct’21.
Pellet price assessments in other key regions have increased by INR 500-850/t as against on 28 Sep.
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.
- Multiple deals were reported for around 70,000 t of material sold and, therefore, considered as T1 trade and factored in for the index calculation, given 50% weightage.
- Seven (07) firm offers and indicative prices were reported. Four were from Raipur and the rest from outside the state capital. Six (06) were taken for price calculation and given a weightage of 50%.
- SteelMint has not received any bid which was not considered for calculation of the index.
Region-wise pellet offers and billet:
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