BigMint is a Market Intelligence and Price Reporting firm that caters to the data and analytics requirements of businesses in the commodities sector. It publishes real time prices and information, which is impartial, independent and reliable, sourced from all industry interfaces – sellers, buyers, agents and traders. This data is filtered and passed through very stringent, calculative assessments before final prices are derived, thereby giving our clients accurate pricing.

Go to List

India: PELLEX falls by INR 100/t ($1/t) amid muted market sentiments

...

Pellets

BigMint Bureau

117 Reads

7 Jan 2025, 19:33 IST

India: PELLEX falls by INR 100/t ($1/t) amid muted market sentiments

Sponge iron and billet prices drop w-o-w

Trades remain absent in Raipur

Pellet prices in Raipur have remained under pressure over the past few days, with no fresh deals reported. Market participants attribute the stagnation to cautious buyer sentiment and ongoing liquidity concerns.

BigMint's bi-weekly domestic pellet (Fe63%) index dropped by INR 100/t ($1/t) to INR 9,450/t ($110/t) DAP Raipur on 7 January 2025 compared to the previous assessment on 3 January. No deals were reported in Raipur in this publishing window.

A Raipur-based trader commented: "Buyers are currently concentrate on completing deliveries from previous transactions and are reluctant to enter into new deals this week. This cautious approach is due to price stability in the region, which aligns with the current sponge iron prices, as well as higher pellet prices offered by suppliers based in Odisha."

Raipur-based pellet-makers kept offers pellet Fe 63% (+/_0.5%) stable at INR 9,400/t ($111/t) exw. A few sellers kept their sales closed this week after last week's transactions.

Steelmakers and other end-users reportedly purchased to fulfill immediate needs, avoiding bulk orders due to uncertain market conditions. Liquidity constraints are significantly impacting trading volume, making bigger transactions difficult.

A buyer commented: "Current rates are workable and reflect the balance between supply and demand in the region. With market participants keeping a close eye on sponge iron prices and the broader steel market trends, fresh activity is expected only if liquidity improves or price corrections occur in key supply regions like Odisha."

Rationale

PELLEX has been derived using data points, i.e., trades, offers, and bids. To download the detailed methodology, click here.

No deals have been reported so far in this publishing window, and not taken for calculations. Thus, the T1 trade category was accorded 0% weightage and not considered for price calculation.

Fourteen (14) firm offers, bids, and indicative prices were heard. Ten (10) were taken for price calculation and given the balance 100% weightage.

Factors driving PELLEX

Sponge iron prices down w-o-w: P-DRI prices decreased by INR 400/t ($5/t) w-o-w to INR 24,450/t ($285/t) exw-Raipur on 7 January. Meanwhile, prices fell by INR 50/t ($0.5/t) d-o-d today. Buying demand remained modest with offers going up in the first half but dropped again due to dull response in the market.

Billet prices drop w-o-w: Billet prices in Raipur declined by INR 700/t ($8/t) w-o-w to INR 39,250/t ($458/t) exw today. Furthermore, d-o-d, prices dropped INR 50/t ($0.5/t). The index witnessed a slight decline today as volatile and unsupportive market sentiments kept buying activity subdued in the semi-finished segment. Meanwhile, the finished steel segment remained firm, supported by a few bookings at stable offers.