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SteelMint: PELLEX falls INR 100/t on thin trading, competitive offers from eastern India

SteelMint’s bi-weekly domestic pellet (Fe 63%) index, PELLEX, stood at INR 8,700/tonne (t) DAP Raipur on 26 July, 2022, down by INR 100/t compared to the last ass...

Pellets
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26 Jul 2022, 20:06 IST
SteelMint: PELLEX falls INR 100/t on thin trading, competitive offers from eastern India

SteelMint's bi-weekly domestic pellet (Fe 63%) index, PELLEX, stood at INR 8,700/tonne (t) DAP Raipur on 26 July, 2022, down by INR 100/t compared to the last assessment on 22 July. Only one deal was reported for around 1,000 t but not considered in the calculation of the index.

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 but not taken into consideration due to low volume and hence accorded no weightage for T1 trade.

  • Eleven (11) firm offers, bids and indicative prices were reported. Around ten (10) were taken for price calculation and given 100% weightage.

  • SteelMint received two bids at around INR 7,900-8,350/t but only one was considered for calculation of the index.

As per SteelMint reports, not many deals were reported earlier in the month at prevailing prices. Also, the landed cost of a few pellet-makers from eastern India was competitive compared to prevailing offers in central India, although no deal was reported so far this week from outside Raipur.

Buyers are also reluctant to conclude deals due to current market volatility and are seen procuring NMDC's iron ore. They are mostly bidding lower, which is the reason why the market is still witnessing disparity in offers and bid prices.

Pellet-based DRI (P-DRI, FeM 80%) prices in Raipur remained rangebound w-o-w at INR 33,600/t exw. However, on a daily basis, sponge iron prices increased sharply today by around INR 1,000/t exw. Following the improvement in finished steel sales, strong spot billet demand led to a surge in sponge iron offers.

Indian pellet market overview

  • The current assessment for iron ore pellets (Fe 63%) Odisha's Barbil fell by around INR 200/t to INR 7,200-7,300/t loaded on to wagon.

  • Iron ore pellet (Fe 63%) prices in Bellary inched down to INR 9,800/t exw today as against INR 9,900/t on 22 July, as per SteelMint assessment. Confirmed deals of 43,000 t were recorded in this publishing window at around INR 9,600-9,800/t exw.

Region-wise pellet offers and deals:

 

26 Jul 2022, 20:06 IST

 

 

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