SteelMint: PELLEX remains stable w-o-w, market awaits OMC's auction

SteelMint's bi-weekly domestic pellet (Fe 63%) index, PELLEX, remained stable w-o-w at INR 9,000/tonne (t) DAP Raipur on 14 July, 2023 as compared to the last assessment on 11 July.

Deals of around 15,000 t were recorded at INR 8,800-9,000/t (Fe 63%) DAP in this publishing window. As per sources, most of the buyers have booked material in advance for monsoon. However, inquiries from Hyderabad-based buyers have kept pellet prices supported.

Market participants have adopted a wait-and-watch mode while they wait for the upcoming OMC auction which is scheduled for next week. The dull steel and semi-finished market has put pressure on pellet makers. Buyers are booking only on a need basis.

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 both were taken into account for price calculation and hence accorded 50% weightage for T1 trade.
  
  
• Four (4) firm offers, bids, and indicative prices were heard. Three (3) were taken for price calculation and given the balance 50% weightage.
  
  

Godawari Power and Ispat Ltd (GPIL) has 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 dip w-o-w

SteelMint's price assessment of sponge P-DRI (FeM 80%) in Raipur decreased by INR 700/t w-o-w to INR 26,100/t exw on 14 July. Compared to the last trading day, prices edged down by INR 300/t. The Raipur market witnessed limited transactions in semis and finished steel as buyers remained silent.

Billet prices continue to drop further w-o-w

Billet prices in Raipur fell by INR 1,250/t w-o-w to INR 40,950/t exw-Raipur on 14 July. On d-o-d basis, prices decreased by INR 300/t. Prices dropped as a result of slow trends and weaker bids, which forced sellers to lower their offers while somewhat increasing buying activity. Overall sentiments were negative due to poor finished steel buying activity and the impact of the north Indian market.