SteelMint: PELLEX falls INR 200/t amid competitive offers from eastern India

SteelMint's bi-weekly domestic pellet (Fe 63%) index, PELLEX, decreased by INR 200/t to INR 10,100/tonne (t) DAP Raipur on 6 October, 2023 compared to the last assessment on 3 October, 2023. Two deals of 13,000 t have been reported at INR 9,300-10,300/t DAP Raipur in this publishing window.

Recently, buyers purchased materials from the central and eastern regions at lower offers however, as per the source few buyers have sufficient inventory for they next few days. Buyers are actively getting offers from outside Raipur which are lower than the prevailing offers in the Raipur market. One of the pellet (Fe 62.5%) deals, of around 9,000 t, was concluded from Odisha at INR 9,300/t DAP Raipur recently.

Buyers are still waiting for price cut from the Raipur pellet makers; therefore, holding any bulk deal for the next few days as the market participants.

Rationale:

• PELLEX has been derived using data points, i.e., trades, offers, and bids. To download the detailed methodology Click here.
  
  
• Two (2) deals were reported so far this week but not taken into account for price calculation and accorded 0% weightage for T1 trade.
  
  
• Ten (10) firm offers, bids, and indicative prices were heard. Six (6) were taken for price calculation and given the balance 100% weightage.
  
  

Factors driving prices

• Raipur pellet offer stable: Raipur pellet manufacturer kept the offer stable this week. Godawari Power and Ispat Ltd (GPIL) pellet (Fe63.5% and Fe66%) offers at INR 10,500/t ($126/t) and INR 12,500/t ($150/t) exw-Raipur. Other pellet players remained stable at INR 10,200- 10,300/t ($123-124/t) exw-Raipur.
  
  
• PDRI prices dip w-o-w: SteelMint's price assessment for sponge PDRI (FeM 80%) in Raipur increased INR 550 /t w-o-w to INR 30,750/t exw on 6 October. Prices rose by INR 100/t d-o-d today. Sponge iron prices increased amid rising demand following northern Indian market.
  
  
• Billet prices fall in Raipur: Billet prices in Raipur increased by INR 550/t w-o-w to INR 43,900/t exw on 6 October. However, prices fell by INR 100/t d-o-d. The continued increase in the billet index, which is being driven by increased seller supply and supported by robust bookings in the finished steel sector during the previous trading session, is a positive development for the steel market. In addition, there was a noticeable uptick in trade volume today, which coincided with higher buying activity in the semi-finished category.