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SteelMint: PELLEX remains stable in recent deals

SteelMint’s bi-weekly domestic pellet (Fe 63%) index, PELLEX, remained stable at INR 9,150/t DAP Raipur on 23 May, 2023 as compared to the previous assessment o...

Pellets
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23 May 2023, 18:45 IST
SteelMint: PELLEX remains stable in recent deals

SteelMint's bi-weekly domestic pellet (Fe 63%) index, PELLEX, remained stable at INR 9,150/t DAP Raipur on 23 May, 2023 as compared to the previous assessment on 19 May. Around 16,000 t of deals were recorded at INR 9,050-9,150/t DAP Raipur in this publishing window.

Pellet prices in the region had seen a rise lately as a few major players had undertaken maintenance shut downs, creating supply worries in the market. However, Raipur pellet makers have now resumed offering.

Rationale:

  • PELLEX has been derived using data points, i.e. trades, offers, and bids. To download the detailed methodology, Click here.

  • Two (2) deals were reported so far this week and both taken into account for price calculation and hence accorded 50% weightage for T1 trade.

  • Seven (7) firm offers, bids and indicative prices were heard. Five (5) were taken for price calculation and given the balance 50% weightage.

Godawari Power and Ispat Ltd (GPIL) has resumed pellet offers (Fe 63.5% +/-0.5) with a hike of INR 300/t ($4/t) to INR 9,300/t ($112/t) exw-Raipur on 23 May. The player was out of the market for a couple of weeks due to plant maintenance. Other pellet makers in Raipur have floated offers at INR 9,000-9,200/t exw.

However, buyers are expecting a price cut in the upcoming days. There is still a gap between offers and bids as sponge prices have fallen. Most of the buyers are eagerly waiting for the NMDC price revision.

SteelMint's assessment for sponge P-DRI (FeM 80%) in Raipur moved down by INR 1,300/t w-o-w to INR 28,300/t exw. However, prices dropped by INR 300/t d-o-d. Sponge prices fell due to a continuous decline in steel prices.

 

23 May 2023, 18:45 IST

 

 

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