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 rises INR 300/t ($4/t) following active trades at revised offers

...

Pellets

BigMint Bureau

134 Reads

31 Dec 2024, 17:59 IST

India: PELLEX rises INR 300/t ($4/t) following active trades at revised offers

Raipur pellet offers increase today

Sponge iron, billet prices rise w-o-w

Pellet prices in Raipur have increased following hikes by local producers amid active trade activity was witnessed at the new offers as buyers concluded recently.

BigMint's bi-weekly domestic pellet (Fe63%) index rose by INR 300/t ($4/t) to INR 9,550/t ($112/t) DAP Raipur on 31 December compared to the previous assessment on 27 December. Pellet producers sold around 50,000 t at revised offers of INR 9,550-9,650/t ($112-113/t) DAP Raipur. Another deals of 10,000 t was concluded at INR 9,250/t ($108/t) DAP a couple of days back.

Pellet producers in Raipur concluded a significant volume of deals after two weeks at revised offers. Buyers had low inventory as they had adopted a wait-and-watch approach in the last two weeks.

A market participant said: "Market sources indicate that the price hike was influenced by a lack of viable alternatives from Odisha, where no significant deals have been concluded in the past two weeks. The Raipur market relies on local producers due to the unfeasibility of Odisha material. Improved downstream sentiment has encouraged producers to raise prices and steelmakers booked need basis quantity with boosted market sentiments."

Raipur-based pellet-makers surged their offers for pellet Fe 63% (+/_0.5%) by INR 200-300/t to INR 9,400-9,500/t ($111-112/t) exw.

Pellet-makers are optimistic about improved trade volumes in the coming weeks, especially as the new year progresses. However, some buyers have opted to remain on the sidelines, awaiting clearer market trends. They are yet to purchase material for the raw material inventory.

A steelmaker informed: "We are holding back purchases until there is more clarity after the NMDC iron ore price revision, which is expected this week."

Market participants expect price volatility to continue in the short term, with the trade likely to gain momentum after NMDC's iron ore prices announcement for January 2025. The market will stabilize as soon as NMDC announce its pricing strategy. Notably, NMDC revised its last prices in November 2024.

Rationale

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

Three (3) deals have been reported so far in this publishing window, and two (2) have been taken for calculations. Thus, the T1 trade category was accorded 50% weightage and not considered for price calculation.

Twelve (12) firm offers, bids, and indicative prices were heard. Ten (10) were taken for price calculation and given the balance 50% weightage.

Factors driving PELLEX

Sponge iron prices up w-o-w: P-DRI prices increased by INR 200/t ($2.5/t) w-o-w to INR 24,850/t ($290/t) exw-Raipur on 31 December. Meanwhile, prices are upward by INR 100/t ($1/t) d-o-d today. Trades remained muted in today's trading session as buyers remained silent on the fresh trades.

Billet prices increase w-o-w: Billet prices in Raipur rose by INR 550/t ($8/t) w-o-w to INR 39,550/t ($462/t) exw today. Furthermore, d-o-d, prices surged by INR 50/t ($0.5/t).

Outlook

According to BigMint, trades may gain momentum in the coming days with volatility expected. Market participants are waiting for price clarity which may emerge after NMDC's price revision which around the corner.