SteelMint: PELLEX remains stable in recent deals

SteelMint's bi-weekly domestic pellet (Fe 63%) index, PELLEX, remained stable at INR 9,100/t DAP Raipur on 20 June, 2023 as compared to the last assessment on 16 June. Deals of 25,000 tonnes (t) were recorded at INR 9,000-9,250/t (Fe 63%) DAP Raipur in this publishing window.

• PELLEX has been derived using data points, ie, trades, offers, and bids. To download the detailed methodology, Click here.
  
  
• Two (2) deals were reported so far this week and both were taken into account for price calculation and hence accorded 50% weightage for T1 trade.
  
  
• Eight (8) firm offers, bids and indicative prices were heard. All were taken for price calculation and given the balance 50% weightage.
  
  

Raipur-based pellet players have kept offers unchanged and are offering at INR 8,900-9,200/t exw. As per sources, the approaching monsoon has increased restocking of raw materials among buyers. This has led demand improvement in the market this week. Bid-offer disparities are also getting narrowed. However, players are looking for dispatches as soon as possible.

• Raipur P-DRI prices down w-o-w: SteelMint's price assessment of sponge P-DRI (FeM 80%) in Raipur decreased by INR 750/t w-o-w to INR 31,450/t exw on 20 June. However, prices decreased by INR 50/t d-o-d. There was negligible demand for both semi-finished and finished steel in Raipur's steel market. However, there has been some small trade activity over the last three days.
  
  
• Billet prices down: Billet prices in Raipur decreased by INR 850/t to INR 43,550/t exw-Raipur on 20 June. Weak demand and sluggish sales in the finished steel market have weighed on the billet prices in Raipur. Buyers made bookings only to meet the immediate requirement as participants were concerned about a dull finished steel outlook. Raipur steel prices might decrease further if the current lacklustre market circumstances persist.