SteelMint: PELLEX remains stable amid limited trades

SteelMint's bi-weekly domestic pellets (Fe 63%) index, PELLEX, stood at INR 9,650/tonne (t) DAP Raipur, stable compared to the last assessment on 30 December, 2022. Around 6,000 t of deals were reported in this current publishing window.

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 and was taken into consideration in this publishing window and accorded 50% weightage for T1 trade.
  
  
• Eight (8) firm offers, bids and indicative prices were reported. Six (6) were taken for price calculation and given the balance 50% weightage.
  
  
• SteelMint received one bid at INR 9,600/t DAP Raipur which was also considered for index calculation in this publishing window.
  
  

Raipur-based pellets producers kept their offers stable at INR 9,400-9,500/t ($113-115/t) exw. Meanwhile, Godawari Power and Ispat's offers for domestic pellets (Fe 63.5%, +/-0.5) stood at INR 9,800/t exw ($118/t).

India's largest merchant iron ore mining company, NMDC, has increased list prices of iron ore recently. The company has raised prices of lump ores by up to INR 500-600/t and fines by INR 500/t, effective from 1 January, 2023. Post this offer buyer and seller disparity narrowed further in the market. However, buyers were silent in today's market. They are mostly in a wait-and-watch mode.

SteelMint's price assessment for sponge P-DRI (FeM 80%) in Raipur moved up to INR 32,400/t w-o-w as against INR 31,950/t exw on 27 December. However, sponge iron prices decreased by INR 200/t d-o-d as against INR 32,600/t exw on 2 January.

Region-wise pellets offers and deals: