SteelMint: PELLEX remains stable in recent deals

SteelMint's bi-weekly domestic pellet (Fe 63%) index, PELLEX, stood at INR 8,100/tonne (t) DAP Raipur on 9 September, 2022. The index remains stable compared to the last assessment on 6 September.

As per market sources, a total 45,000 t of pellet deals were reported in Raipur but only 20,000 t were taken into consideration for the index calculation.

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.
  
  
• Three deals were reported in this publishing window. Out of these, only two were considered for calculation and accorded 50% weightage for T1 trade.
  
  
• Eight (08) firm offers, bids and indicative prices were reported. Six (06) were taken for price calculation and given another 50% weightage.
  
  
• SteelMint received three bids at INR 7,750-8,100/t FOR and only one considered for calculation of the index.
  
  

A few buyers have gradually resumed pellet buying but still a few bids are coming which are lower than offers in the market. Falling sponge iron prices has kept buying interest on the lower side. However, sellers opine that prices have largely bottomed out and there is little scope for any significant correction.

Pellet-based DRI (P-DRI, FeM 80%) prices in Raipur dropped further by around INR 900/t, w-o-w, to INR 32,300/t exw. On a daily basis, prices were down by around INR 200/t.

India's largest merchant iron ore mining company, NMDC, has kept iron ore prices unchanged for September deliveries, SteelMint learnt from sources.

Region-wise pellet offers and deals: