SteelMint: PELLEX down by INR 200/t amid limited trade, fall in bids

SteelMint's bi-weekly domestic pellet (Fe 63%) index, PELLEX, stood at INR 7,800/tonne (t) down by INR 200/t compared to the last assessment on 28 October, 2022 on falling demand. However, around 10,000 t of pellet deals were reported but not considered for calculation in this current publishing window.

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 considered in this publishing window hence accorded 0% weightage for T1 trade.
  
  
• Nine (09) firm offers, bids and indicative prices were reported. Six (06) were taken for price calculation and given the balance 100% weightage.
  
  
• SteelMint has received two bids but taken only one in this publishing window.
  
  

Godawari Power and Ispat Ltd (GPIL) has reduced domestic pellets (Fe63.5%, +/-0.5) offers by INR 500/t ($6/t) to INR 8,100/t exw ($98/t) from INR 8,600/t exw ($104/t). Meanwhile, other Raipur-based pellets producers kept their offers at INR 7,700-7,800/t ($93-95/t) exw.

Buyers are still reluctant to buy at the prevailing prices, they are quoting around INR 7,500-7,600/t exw for pellets owing to continuous fall in sponge prices. An uncertain market and lack clarity are keeping buyers away from any trade.

SteelMint's price assessment for sponge P-DRI (FeM 80%) in Raipur moved down to INR 31,100/t exw w-o-w, as against INR 32,000/t exw on 26 October. On a daily basis, sponge iron prices moved down by INR 100/t exw as against INR 31,200/t exw 31 October.

Region-wise pellet offers and deals: