SteelMint: PELLEX falls further by INR 200/t on lower bids

SteelMint's bi-weekly domestic pellet (Fe 63%) index, PELLEX, stands at INR 10,000/tonne (t) DAP Raipur on 21 Dec'21, down by around INR 200/t against the last assessment on 17 Dec'21. Limited trade and drop in bids pulled down the index further.

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 (01) deal was reported in this publishing window at INR 10,050/t DAP Raipur which was considered as T1 trade for calculation of the index and accorded 50% weightage.
  
  
• Nine (09) firm offers and indicative prices were reported. Seven (07) were taken for price calculation and given 50% weightage.
  
  
• SteelMint received three bids and all were considered for calculation of the index.
  
  

Central India-based pellet maker kept offers stable at INR 9,800-10,200/t exw. Price indications in Jharsuguda, Odisha kept offers at INR 9,000-9,500/t exw, lower by INR 300-400/t against 17 Dec'21.

SteelMint's assessment for sponge iron, P-DRI (FeM 80%), dropped by INR 500/t w-o-w to INR 28,500/t exw-Raipur. Offers by Raipur based plants were floated at INR 28,500-28,700/t exw, (FeM 80%) while those from outside Raipur suppliers were reported at INR 28,300-28,400/t FoR Raipur, (FeM 79%).

As per sources, it is expected that pellet offers may come down in the coming days. The disparity between offers and bids was heard to the tune of INR 400-500/t in the Raipur market currently. However, global iron ore price recovery may give some support to Indian pellet export bookings. Prices of Chinese spot iron ore fines Fe 62% closed at $123/t CNF China on 20 Dec'21, increasing w-o-w by $13/t, on restocking needs, as per data maintained by SteelMint.

Indian pellet market overview: The Indian pellet market witnessed strong correction in prices across locations in the country around INR 200-950/t.

SteelMint's assessment for iron ore pellet (Fe 63%) prices in Bellary decreased to INR 9,600/t today against INR 10,550/t on 17 Dec.

Confirmed deals for 9,000 t were recorded in this publishing window at around INR 9,500-10,300/t exw.

Region-wise pellet offers and deals: