SteelMint: PELLEX remains stable in recent trade

SteelMint's bi-weekly domestic pellet (Fe 63%) index, PELLEX, remained stable at INR 9,000/tonne (t) DAP Raipur on 7 July 2023 as compared to the last assessment on 4 July. Deals of around 26,000 t were recorded at INR 9,050-9,250/t (Fe 63/63.5%) DAP in this publishing window.

Buyers are currently restocking material for post-monsoon operations while other market participants are waiting for NMDC's iron ore price revision. However, some deals were concluded this week. The continuous drop in semi-finished and finished steel prices have made some buyers little reluctant to buy bulk volumes at prevailing prices.

Rationale-

• 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 one was taken into account for price calculation and hence accorded 50% weightage for T1 trade.
  
  
• Ten (10) firm offers, bids, and indicative prices were heard. Nine (9) were taken for price calculation and given the balance 50% weightage.
  
  

Godawari Power and Ispat Ltd (GPIL) kept pellet (Fe 63.5% +/-0.5) offers stable at INR 9,200/t ($112/t) exw-Raipur. Other pellet players are offering in the range of INR 8,800-8,900/t exw.

Raipur P-DRI prices fall w-o-w

SteelMint's price assessment of sponge P-DRI (FeM 80%) in Raipur decreased by INR 300/t w-o-w to INR 26,800/t exw on 7 July. Prices fell by INR 150/t d-o-d. The market witnessed weak trading activity as no major deals were heard.

Billet prices continue to drop further w-o-w

Billet prices in Raipur fell by INR 950/t w-o-w to INR 42,150/t exw-Raipur on 7 July. Prices fell by INR 350/t d-o-d. The price drop was the result of adverse sentiment in the spot market, causing sellers to lower their offers. However, buying activity increased as reduced offers forced buyers to take positions and complete additional bookings.