SteelMint: PELLEX remains range-bound as offers fall, trades improve

SteelMint's bi-weekly domestic pellet (Fe 63%) index, PELLEX, inched down by INR 50/tonne (t) to INR 9,300/t DAP Raipur on 14 April 2023 compared to the previous assessment on 11 April. Fall in pellet offers resulted in improved trades. Market players are awaiting OMC's iron ore auction outcome scheduled next week.

A total of five deals of 75,000 t were concluded at INR 9,150-9,950/t DAP Raipur in this publishing window.

Rationale:

• PELLEX has been derived using data points, i.e. trades, offers and bids. To download the detailed methodology, Click here.
  
  
• Thirteen (13) firm offers, bids and indicative prices were heard. Eleven (11) were taken for price calculation and given the balance 50% weightage.
  
  
• Five (5) deals were received and all were taken into account for price calculation. It was accorded 50% weightage for T1 trade.
  
  

Raipur-based pellet producers offered the Fe 63-63.5% grade at INR 9,400-9,800/t ($115-120/t) exw, down by INR 100/t against the last assessment. Multiple deals were concluded in this publishing window as market participants showed interest in trades.

GPIL dropped its pellet prices by INR 100/t today.

SteelMint's price assessment for sponge P-DRI (FeM 80%) in Raipur decreased by INR 50/t w-o-w to INR 30,450/t exw. Prices rose by INR 250/t d-o-d.

Region-wise offers and deals: