SteelMint: PELLEX remains stable, trade improves
SteelMint’s bi-weekly domestic pellets (Fe 63%) index, PELLEX, stood at INR 10,250/tonne (t), stable compared to the last assessment on 27 January, 2023. Around...
SteelMint's bi-weekly domestic pellets (Fe 63%) index, PELLEX, stood at INR 10,250/tonne (t), stable compared to the last assessment on 27 January, 2023. Around 30,000 t of deals were reported but only 10,000 t were considered in this publishing window. Trade volumes improved today in comparison to the last few days that were rather subdued.
Rationale:
- PELLEX has been derived using data points, i.e. trades, offers and bids. To download the detailed methodology, Click here.
- Three deals were reported but only two were taken into consideration in this publishing window and accorded 50% weightage for T1 trade.
- Eight (08) firm offers, bids and indicative prices were reported. Seven (07) were taken for price calculation and given the balance 50% weightage.
- SteelMint received two bids at INR 9,950-10,250/t DAP Raipur and only one was considered for index calculation in this publishing window.
Raipur-based pellet producers floated offers at INR 10,100-10,200/t ($123-$125/t) exw. Godawari Power and Ispat offered pellets (Fe 6.5%, +/-0.5) at INR 10,500/t exw ($128/t) as against INR 10,100/t exw ($123/t) previously.
India's largest merchant iron ore mining company, NMDC, increased list prices of iron ore recently. The company raised prices of lump ores by up to INR 300/t and fines by INR 500/t, effective from 28 January, 2023. Post-this offer, buyer and seller disparity narrowed in the market but still bulk buying is missing. Most of the buyers are in wait-and-watch mode in terms of booking sponge and finished steel ahead of the Union Budget.
SteelMint's price assessment for sponge P-DRI (FeM 80%) in Raipur increased marginally by INR 50/t w-o-w to INR 32,000-32,100/t exw. However, on a daily basis, sponge iron prices inched down by INR 50/t.
Region-wise offers and deals: