SteelMint: PELLEX rises further by INR 700/t on deals at higher offers

SteelMint's bi-weekly domestic pellet (Fe 63%) index, PELLEX, increased further by INR 700/t to INR 13,000/t DAP Raipur on 5 Oct'21. Around 25,000 t of confirmed deals have been concluded in the Raipur market during this assessment period.

Raipur-based Godawari Power & Ispat raised offers by around INR 500/t today to INR 13,500/t exw. Other pellet makers in Raipur are keeping offers unchanged at INR 13,000/t exw.

However, a few pellet producers in Raipur are not offering material as they are on maintenance shutdowns. Also, pellet makers from Raipur have concluded a decent volume of deals over the last week. Therefore, active buying interest was not observed in the last couple of days.

Raipur sponge P-DRI (FeM 80%) prices remained stable, d-o-d, at INR 34,200/t exw. Inflated coal prices are still keeping sponge offers high. On a weekly basis, prices have moved up by INR 3,400/t.

Indian pellets market overview:

Indian pellet prices have moved up sharply across regions in this publishing period from INR 250/t to INR 1,900/t.

Bellary iron ore pellet (Fe 63%) prices have increased to 13,000/t exw as against INR 11,700-11,800/t on 1 Oct, as per SteelMint assessment. Confirmed deals of about 3,000 t were recorded at around INR 13,000/t exw.

Jindal SAW has further increased pellet offers by INR 1,000/t ($14) on 4 Oct. The current offer for Fe 63% pellet stands at INR 12,500/t DAP Kandla, SteelMint learnt from sources. Hike in pellet offers in eastern and southern India, following the sponge iron rally, has resulted in an increase in offers by the company, SteelMint understands.

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 for around 25,000 t of material and, therefore, considered as T1 trade and factored in for the index calculation, given 50% weightage.
  
  
• Ten (10) firm offers and indicative prices were reported. Three were from Raipur and the rest from outside the state capital. Eight (8) were taken for price calculation and given a weightage of 50%.
  
  
• SteelMint has not received any bids and therefore not considered for calculation of the index.
  
  

Region-wise pellet offers and deals: