SteelMint: PELLEX falls INR 700/t on competitive offers from nearby regions

SteelMint's bi-weekly domestic pellet (Fe 63%) index, PELLEX, stood at INR 12,300/tonne (t) DAP Raipur on 5 Apr'22, down INR 700/t compared with the last assessment on 1st April. No deal was reported in the last few days in Raipur, Chhattisgarh.

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.
  
  
• No deal was reported and not taken into consideration in this publishing window . Hence accorded no weightage for T1 trade.
  
  
• Eleven (11) firm offers, bids and indicative prices were reported. Eight (08) were taken for price calculation and given 100% weightage.
  
  
• SteelMint received three bids and all were considered for calculation of the index.
  
  

Raipur-based pellet producers kept their offers stable today but no deal was heard. The current offer for Fe 64/63% pellet stands at INR 13,500-13,800/t exw.

Deals are not happening on falling sponge iron, billet prices and the competitive landed cost from nearby regions, especially Odisha and West Bengal.

Jharsuguda-based producers are offering at INR 11,800/t exw. However, bids are hovering at still lower levels.

Demand is extremely weak for pellets as no buyers are showing any interest at current offers. A few bids from the buyers indicated certain gaps between offers and bids. Buyers are expecting Raipur pellet offers to drop, given the subdued sentiment in the export market over the past two weeks.

Pellets-based DRI (P-DRI, FeM 80%) prices in Raipur decreased to INR 37,500/t exw, down by around INR 800/t w-o-w. However, on a daily basis, sponge iron prices inched up around INR 400/t.

Indian pellets market overview: Domestic pellet prices decreased further in the range of INR 100-800/t across regions except in western India where prices remained stable this week.

• Pellet (Fe 63%) prices in Bellary inched down INR 10,000/t exw today as against INR 10,100/t on 1 April, as per SteelMint assessment. However, no deals have been reported in the current publishing window.
  
  
• Pellet prices in Durgapur decreased today. The current assessment for pellet (Fe 63%) stands at INR 10,500/t exw Durgapur, down INR 500/t compared to the last assessment of INR 11,000/t on 1 April.
  
  

Region-wise pellets offers and deals: