SteelMint: PELLEX remains stable while buyers wait for NMDC's price revision
SteelMint’s bi-weekly domestic pellet (Fe 63%) index, PELLEX, stood at INR 13,900/tonne (t) DAP Raipur on 22 Mar’22, stable compared with the last ass...
SteelMint's bi-weekly domestic pellet (Fe 63%) index, PELLEX, stood at INR 13,900/tonne (t) DAP Raipur on 22 Mar'22, stable compared with the last assessment on 22 March. Limited deals were heard in this publishing window.
Rationale:
- PELLEX has been derived using data points: i.e. trades, offers and bids. You can download the detailed methodology by clicking on this link Click here.
- One deal was reported and taken into consideration in this publishing window; likewise, accorded 50% weightage.
- Six (06) firm offers, bids and indicative prices were reported. Three (03) were taken for price calculation and given 50% weightage.
- SteelMint has also received one bid which were considered for calculating the index.
Raipur-based pellets producers kept offers stable at INR 14,500/t exw for Fe 63% (+/- 0.5%). However, SteelMint heard a few offers at INR 13,500-14,000/t exw from the buyers' end. Jharsuguda-based pellet makers resumed offering in the domestic market at INR 13,700/t exw.
Buyers are anxious and confused while looking at the present market scenario and are waiting for NMDC's price revision expected shortly.
NMDC had scheduled two iron ore auctions from Chhattisgarh on 23 Mar'22. The material offered was DR-CLO, Baila lumps, fines and ROM. The entire lot of 16,800 t of DR-CLO (10-40mm, Fe 67%) was booked at a premium of 33% (around INR 2,400/t) against the base price of INR 7,254/t. However, the lots comprising lumps and fines received flat bids, sources said.
Pellets-based DRI (P-DRI, FeM 80%) prices in Raipur decreased to INR 40,000/t exw today.
Indian pellets market overview: Domestic pellets prices remained largely stable in major markets except Durgapur.
Pellet prices in Durgapur decreased today, as per SteelMint assessment. The current assessment for pellet (Fe 63%) stands at INR 11,600/t exw Durgapur, down INR 1,300/t compared to the last assessment on 22 Mar'22.
Region-wise pellets offers and deals: