SteelMint: PELLEX remains range-bound in recent deals

SteelMint's bi-weekly domestic pellet (Fe 63%) index, PELLEX, fell slightly by INR 50/tonne (t) to INR 9,050/t DAP Raipur on 27 June 2023, as compared to the last assessment on 23 June. Deals of 28,000 t were recorded at INR 8,800-9,350/t (Fe 63%) DAP Raipur in this publishing window.

Rationale-

• PELLEX has been derived using data points, ie, trades, offers, and bids. To download the detailed methodology, Click here.
  
  
• Two (2) deals were reported so far this week and both were not taken into account for price calculation and hence accorded 50% weightage for T1 trade.
  
  
• Seven (7) firm offers, bids, and indicative prices were heard. All were taken for price calculation and given the balance 50% weightage.
  
  

Godawari Power and Ispat Ltd (GPIL) has kept stable pellet (Fe 63.5% +/-0.5) offers at INR 9,200/t ($112/t) exw-Raipur. Other Raipur-based pellet players' offers were in the range of INR 8,800-8,900/t exw. The buyers are looking to buy pellets to stock up on their inventories ahead of monsoon, while others are awaiting price revision from NMDC.

• Raipur P-DRI prices down w-o-w: SteelMint's price assessment of sponge P-DRI (FeM 80%) in Raipur decreased by INR 600/t w-o-w to INR 27,100/t exw on 27 June. Prices inched down by INR 100/t d-o-d. Raipur is witnessing low demand for finished and semi-finished steel. Due to the impact on sales, major mills are providing discounts to local traders. The state of the steel industry at the moment is not favourable.
  
  
• Billet prices down: Billet prices in Raipur decreased by INR 1,150/t in the last two weeks to INR 43,250/t exw-Raipur on 27 June compared to 13 June. Prices dropped as a result of sluggish demand, lesser buying inquiries, and bearish sentiments reigning in the northern India markets, all of which have had an impact on trade volumes.