SteelMint: PELLEX remains stable amid limited trade

SteelMint's bi-weekly domestic pellet (Fe 63%) index, PELLEX, remained stable at INR 9,300/t DAP Raipur on 25 April 2023 compared to the previous assessment on 21 April.

Pellet prices remained stable as sponge iron ore prices decreased this week. A deal of 5,000 t was concluded at INR 9,250/t DAP Raipur in this publishing window.

Rationale:

• PELLEX has been derived using data points, i.e. trades, offers and bids. To download the detailed methodology, Click here.
  
  
• One deal was reported so far this week and taken into account for price calculation and accorded 50% weightage for T1 trade.
  
  
• Eleven (11) firm offers, bids and indicative prices were heard. Eight (8) were taken for price calculation and given the balance 50% weightage.
  
  
• Three (3) bids were received and two (2) were taken into account for price calculation.
  
  

Raipur-based pellet producers offered the Fe 63% grade at INR 9,200-9,300/t ($112-113/t) exw. Godawari Power and Ispat Ltd (GPIL) has kept pellet (Fe63.5% +/-0.5) offers stable at INR 9,500/t exw ($116/t) from 19 April 2023.

As per sources, there is very little trade activity in the market as the price gap between buyers and sellers still exists. Buyers are quoting around INR 300-400/t lower than prevailing offers. However, buyers are waiting for a decrease in iron ore offers as trade is happening only on need basis. Buyers are mostly on a wait-and-watch mode.

SteelMint's price assessment for sponge P-DRI (FeM 80%) in Raipur decreased by INR 900/t w-o-w to INR 29,600/t exw. Prices decreased by INR 100/t d-o-d. The downtrend in sponge iron pricing has also been influenced by a lack of optimism in the market. Buyers are making only need-based bookings.

Region-wise offers and deals: