SteelMint: PELLEX rises by INR 150/t

SteelMint's bi-weekly domestic pellets (Fe 63%) index, PELLEX, stood at INR 9,800/tonne (t) DAP Raipur, up by INR 150/t compared to the last assessment on 3 January, 2023. The market saw lower trading activities in the past couple of days. Around 3,000 t of deals were reported in this current 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 was taken into consideration in this publishing window being accorded 50% weightage for T1 trade.
  
  
• Ten (10) firm offers, bids and indicative prices were reported. Eight (8) were taken for price calculation and given the balance 50% weightage.
  
  
• SteelMint received two bids at INR 9,600-9,650/t DAP Raipur which were also considered for index calculation in this publishing window.
  
  

Raipur-based pellets producers kept their offers at INR 9,500-9,800/t ($115-118/t) exw. Meanwhile, Godawari Power and Ispat's offers for domestic pellets (Fe 63.5%, +/-0.5) stood at INR 9,800/t exw ($118/t).

India's top iron ore miner, NMDC, conducted an auction on 5 January, 2023 for nearly 222,600 t of iron ore from the Bacheli mines in Chhattisgarh. The auction received good response for lumps, with the entire quantity of DR-CLO getting booked. Bids for DR-CLO increased by around INR 400/t, while those for Baila fines and run of mine (ROM) ore remained at the base price level.

SteelMint's price assessment for sponge P-DRI (FeM 80%) in Raipur rose to INR 32,200/t w-o-w as against INR 31,950/t exw on 30 December. However, sponge iron prices decreased by INR 200/t d-o-d as against INR 32,450/t exw on 5 January.

Region-wise pellets offers and deals: