SteelMint: PELLEX drops by INR 150/t as pellet makers cut offers

SteelMint's bi-weekly domestic pellet (Fe 63%) index, PELLEX, inched down by INR 150/tonne (t) w-o-w to INR 8,800/t DAP Raipur on 25 July, 2023 as compared to the last assessment on 21 July. No deals were heard this week as the market remained silent.

Pellet makers reduced offers as buyers were in a wait-and-watch mode as they had already restocked inventory for the monsoon season. However, they may book pellets in the upcoming days.

Rationale-

• PELLEX has been derived using data points, i.e, trades, offers, and bids. To download the detailed methodology, Click here.
  
  
• No deals were reported so far this week and not taken into account for price calculation and hence accorded 0% weightage for T1 trade.
  
  
• Twelve (12) firm offers, bids, and indicative prices were heard. Eight (8) were taken for price calculation and given the balance 100% weightage.
  
  

Godawari Power and Ispat Ltd (GPIL) has lowered pellet (Fe 63.5% +/-0.5) offers by INR 200/t to INR 9,000/t ($110/t) exw-Raipur. Other major players have also lowered offers to INR 8,600-8,800/t exw. Pellet makers in nearby cities of Raipur also cut their offers for this week.

Raipur P-DRI prices edge down w-o-w

SteelMint's price assessment of sponge P-DRI (FeM 80%) in Raipur decreased by INR 300/t w-o-w to INR 26,050/t exw on 25 July. Compared to the last trading day, prices remained largely stable. Spot transactions were moderate, resulting in a drop in both offers and bids, putting additional pressure on suppliers. Participants booked material on need basis.

Billet prices continue to drop further w-o-w

Billet prices in Raipur fell by INR 950/t w-o-w to INR 40,150/t exw-Raipur on 25 July. Prices inched down by INR 200/t d-o-d. Prices dropped to a new low due to fluctuating sentiments in the semi-finished steel market. However, a rise in buying activity was seen d-o-d, supported by a marginal improvement in spot demand for completed steel.

According to sources, due to increased finished steel input prices, certain market participants dealing in finished steel have decided to sell billets in the spot market.