SteelMint: PELLEX inches up by INR 100/t, but trading subdued

SteelMint's bi-weekly domestic pellet (Fe 63%) index, PELLEX, stood at INR 9,200/tonne (t) DAP Raipur on 5 August, 2022, up by INR 100/t compared to the last assessment on 2 August. The index edged up as a deal was concluded at increased offer. Around 15,000 t of deals were concluded in this publishing window. However, due to the drop in sponge iron prices, not many players were active in procuring pellets.

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 deal was reported in this publishing window, taken into consideration and hence accorded 50% weightage for T1 trade.
  
  
• Six (06) firm offers, bids and indicative prices were reported. Five (05) were taken for price calculation and given 50% weightage.
  
  
• SteelMint received two bids at around INR 8,150-8,450/t DAP but only one was considered for calculation of the index.
  
  

As per sources, buyers were silent in this publishing window due to the increased offers, waiting for some price correction in the upcoming days. Pellet-based DRI (P-DRI, FeM 80%) prices in Raipur decreased by around INR 900/t w-o-w to INR 34,800/t exw. On a daily basis, sponge iron prices decreased by around INR 500/t.

Indian pellet market overview

• The current assessment for iron ore pellets (Fe 63%) in Durgapur stood stable at INR 7,500/t exw.
  
  
• Iron ore pellet (Fe 63%) prices in Bellary inched up to INR 9,900/t exw today as against INR 9,750/t on 2 August, as per SteelMint assessment. Confirmed deals of 14,000 t were recorded in this publishing window at around INR 9,800-10,100/t exw. Increase in sponge iron prices and delay in iron ore dispatches kept pellet demand supported.
  
  

Region-wise pellet offers and deals: