SteelMint: PELLEX edges down by INR 100/t in absence of trade

SteelMint's bi-weekly domestic pellets (Fe 63%) index, PELLEX, stood at INR 10,000/tonne (t) DAP Raipur, inching down by INR 100/t compared to the last assessment on 7 February, 2023. No deals were reported in the current publishing window. Most of the buyers kept away from making fresh bookings on falling sponge prices and anticipation of drop in pellets offers in the near-term.

Rationale:

• PELLEX has been derived using data points, i.e. trades, offers and bids. To download the detailed methodology, Click here.
  
  
• No deal was reported hence not considered in this publishing window and accorded 0% weightage for T1 trade.
  
  
• Nine (9) firm offers, bids and indicative prices were reported. Seven (7) were taken for price calculation and given the balance 100% weightage.
  
  
• SteelMint received two bids at INR 9,750/t DAP Raipur which were considered for index calculation in this publishing window.
  
  

Raipur-based pellets producers floated offers at INR 9,900-10,200/t ($120-123/t) exw from INR 10,100-10,200/t ($122-123/t) exw. Meanwhile, Godawari Power and Ispat offered pellets (Fe 63.5%, +/-0.5) at INR 10,200/t exw ($123/t) from INR 10,500/t exw ($127/t) on 16 January, 2023.

Pellet index inched down further today due to a sluggish market and low buying interest. The market was on complete silent mode, and refrained to book any pellets deals. Most of the steel mills holding any pellets deals due to unchanged raw material offer at the same time drop in domestic sponge and other semi-finished offers. They are expecting further price cuts in the coming days.

SteelMint's price assessment for sponge P-DRI (FeM 80%) in Raipur moved down by INR 400/t w-o-w to INR 31,400/t exw. Sponge iron prices decreased by INR 100/t d-o-d.

Region-wise offers and deals: