SteelMint: PELLEX remains stable on low trading

SteelMint's bi-weekly domestic pellet (Fe 63%) index, PELLEX, remained stable at INR 8,750/t DAP Raipur on 12 May, 2023 as compared to the previous assessment on 9 May. Around 20,000 t of deals were recorded at INR 9,150/t DAP Raipur in this publishing window but not considered for price calculation.

Rationale:

• PELLEX has been derived using data points, i.e. trades, offers, and bids. To download the detailed methodology, Click here.
  
  
• One deal was reported so far this week and not taken into account for price calculation and accorded 0% weightage for T1 trade.
  
  
• Nine (9) firm offers, bids and indicative prices were heard. Four (4) were taken for price calculation and given the balance 100% weightage.
  
  

One of the prominent pellet makers has shut down its plant for maintenance for the entire May month. However, other producers have kept offers stable at INR 8,700-9,000/t ($106-109/t).

As per sources, buyers are still awaiting clarity from the market as prices are not stable yet. The OMC's auction is also around the corner and buyers are keeping their eyes on it. They are only focused on need-based bookings on lower offers.

SteelMint's assessment for sponge P-DRI (FeM 80%) in Raipur increased by INR 1,400/t w-o-w to INR 29,050/t exw. Meanwhile, prices inched up by INR 100/t d-o-d. Sponge iron prices remained volatile today despite the rising trends. Low transaction volumes can be attributed to the unpredictable price movements.