SteelMint: PELLEX falls by INR 200/t amid festive season, offers drop

SteelMint's bi-weekly domestic pellet (Fe 63%) index, PELLEX, dropped by INR 200/t to INR 9,800/tonne (t) DAP Raipur on 23 October, 2023 compared to the last assessment on 20 October. One deal of 3,000 t was recorded at INR 9,300/t DAP Raipur from eastern India in this publishing window but not taken into the index calculation. Eastern region pellet makers, on the other hand, offered materials in Raipur comparatively cheaper, which impacted the local Raipur pellet offers.

As per sources, continuously decreasing sponge and steel prices weighed on Raipur pellet prices. The market will be back-post Dusshehra festival. Most of the market participants remained silent, as no big deal was also heard so far in this week.

The eastern region market was less active due to the Durga Puja festival. No market movement or trade activity was seen here.

Rationale:

• PELLEX has been derived using data points, i.e., trades, offers, and bids. To download the detailed methodology Click here.
  
  
• One deal was reported so far this week and was not taken into account for price calculation and accorded 0% weightage for T1 trade.
  
  
• Nine (9) firm offers, bids, and indicative prices were heard. Six (6) were taken for price calculation and given the balance 100% weightage.
  
  

Factors affecting prices

• Raipur pellet offers fall: GPIL has decreased pellet (Fe63.5% and Fe66%) offers by INR 300/t ($2/t) today to INR 10,000/t ($120/t) and INR 12,000/t ($144/t) exw-Raipur. However, no deal from the pellet maker was recorded at the revised prices. Other pellet makers have also dropped offers by INR 200-300/t to INR 9,600-9,700/t ($116-117/t) exw-Raipur.
  
  
• PDRI prices fall w-o-w: SteelMint's price assessment for sponge PDRI (FeM 80%) in Raipur declined by INR 1,350 /t w-o-w to INR 27,500/t exw on 23 October. Prices fell by INR 500/t d-o-d today. Some buyers booked material from the Eastern region at lower offers.
  
  
• Billet prices fall sharply in Raipur: Billet prices in Raipur fell by INR 1,150/t w-o-w to INR 41,500/t exw on 23 October. Prices fell by INR 400/t d-o-d. The billet index fell significantly today owing to decreased offers. Furthermore, the influence of seasonal holidays across the country slowed market activity. Buying activity in the semi-finished category was also scant due to limited availability of material amid the festive holidays.