SteelMint: PELLEX remains stable amid active deals

SteelMint's bi-weekly domestic pellet (Fe 63%) index, PELLEX, remained stable at INR 8,800/t DAP Raipur on 28 July, 2023 as compared to the last assessment on 25 July. Deals of 25,000 tonnes (t) of pellets (Fe 63-63.5%) were heard at INR 8,800-9,150/t DAP and it seems that the market is active during this publishing window.

Buyers booked material according to their needs as semi-finished and steel prices increased today. Major plants kept their pellet offers stable compared to the previous window.

Rationale-

• PELLEX has been derived using data points, i.e, trades, offers, and bids. To download the detailed methodology, Click here.
  
  
• Three (3) deals were reported so far this week and all were taken into account for price calculation and hence accorded 50% weightage for T1 trade.
  
  
• Nine (9) firm offers, bids, and indicative prices were heard. Seven (7) were taken for price calculation and given the balance 50% weightage.
  
  

Godawari Power and Ispat Ltd (GPIL) has kept pellet (Fe 63.5% +/-0.5) offers stable at INR 9,000/t ($110/t) exw-Raipur. Other major players have also lowered offers to INR 8,600-8,800/t exw. As per sources, inquiries from other regions were also heard.

Raipur P-DRI prices edge up w-o-w

SteelMint's price assessment of sponge P-DRI (FeM 80%) in Raipur increased by INR 700/t w-o-w to INR 26,950/t exw on 28 July. Compared to the last trading day, prices improved by INR 550/t. Sponge P-DRI prices finally began to rise as the market experienced moderate trading activity. This move in pricing boosted the confidence of participants in the semi-finished and finished steel markets. However, steel prices have been exceedingly volatile. This has made it difficult for buyers to get any clarity on prices.

Billet prices rise w-o-w

Billet prices in Raipur inched up by INR 150/t w-o-w to INR 40,750/t exw-Raipur on 28 July. Prices increased by INR 500/t d-o-d. Prices have recovered as a result of shortages on the supply side and concerns about raw material availability. However, the daily transaction volume decreased as users were unable to accept the price hike, requiring them to wait for the market to normalise.

Given the monsoon season and preference over iron ore, pellet prices in the domestic market are likely to remain supported, opined sources. However, the absence of active bids from overseas buyers has kept the Indian pellet export market subdued this week.