SteelMint: PELLEX up sharply by INR 500/t on rising offers

SteelMint’s bi-weekly domestic pellet (Fe 63%) index, PELLEX, stands at INR 12,650/tonne (t) DAP Raipur on 08 Feb’22, up sharply by INR 500/t against the last assessment on 4 Feb. Around 15,000 t of pellet deals were reported from Raipur at INR 12,150/t DAP basis but not considered in this publishing window, as players raised offers today.

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 but not taken into consideration in this publishing window, hence, accorded no weightage.
• Seven (07) firm offers, bids and indicative prices were reported. All were taken for price calculation and given 100% weightage.
• SteelMint received no bids hence given no weightage in the index.

Raipur pellet-makers have increased domestic offers by INR 300-500/t today to INR 12,500-12,600/t exw from INR 12,000-12,300/t exw reported in the last assessment. However, it may be noted that a few central India-based pellet-makers are under maintenance for the next one week and more.

A Jharsuguda, Odisha-based pellet producer is also not offering in the market due to being under maintenance shut down for the next 10 days.

Buyers, on the other hand, are not willing to make any more purchases amidst pending dispatches of previous bookings and preference to NMDC’s DR CLO. High coal offers at ports and fall in sponge prices were the other factors resulting in delayed pellet purchases.

Pellet-based DRI (P-DRI, FeM 80%) prices in Raipur have dropped by INR 600/t w-o-w to INR 34,300/t compared to last week’s offers. On a daily basis, prices have come down by INR 300/t.

Indian pellet market overview: Domestic pellet prices increased by around INR 100-500/t w-o-w across the regions except western India.

Pellet prices in Durgapur have increased, as per latest reports. SteelMint’s current assessment for iron ore pellets (Fe 63%) stands at INR 11,850/t exw-Durgapur, up INR 450/t compared to the last assessment of INR 11,400/t on 4 Feb’22. Deals for 3,000 t were heard  to have been concluded recently at INR 11,700/t exw.

Region-wise pellet offers and deals: