SteelMint: PELLEX inches down on limited trade, fall in sponge prices

SteelMint's bi-weekly domestic pellet (Fe 63%) index, PELLEX, stood at INR 8,300/tonne (t) down by INR 100/t compared to the last assessment on 1 October, 2022. Around 24,000 t of deals were concluded in this publishing window and all were taken into consideration.

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.
  
  
• Two deals were reported and considered in this publishing window and accorded 50% weightage for T1 trade.
  
  
• Seven (07) firm offers, bids and indicative prices were reported. Five (05) were taken for price calculation and given another 50% weightage.
  
  
• SteelMint received one bid also at INR 8,250/t DAP in this publishing window.
  
  

Godawari Power and Ispat Ltd (GPIL) has kept the offers stable at INR 8,500-8,600/t exw ($106/t) . However, other Raipur-based pellet producers increased their offers marginally to around INR 8,200/t exw.

Buyers have shown buying interest amid restocking during the festivity. However, they are eagerly waiting for NMDC's price revision which may be released soon as per sources.

SteelMint's price assessment for sponge P-DRI (FeM 80%) in Raipur was largely stable w-o-w at INR 31,750/t exw. However, prices have seen a downward correction of INR 150/t against the closing of last week.

Region-wise pellet offers and deals: