SteelMint: PELLEX rises INR 100/t, but limited deals reported during holidays

SteelMint's bi-weekly domestic pellet (Fe 63%) index, PELLEX, increased further by INR 100/t to INR 14,000/t DAP Raipur on 16 Oct'21. Limited trade activities were seen amid festive holidays. In a recent deal, 10,000 t of pellets was booked at INR 14,000/t exw-Raipur.

Central India-based pellet makers have kept offers unchanged for the domestic market, sources informed SteelMint. Current offers for pellets (Fe 63%) stand at INR 13,700-14,000/t exw-Raipur.

No firm offers from Jharsuguda were reported. However, earlier this week, a deal for around 30,000 t was concluded from a West Bengal-based player at around INR 12,800/t DAP Raipur, after which fresh offers have increased and are currently assessed at INR 13,400-13,600/t DAP Raipur.

P-DRI (FeM 80%) prices in Raipur rose further by INR 400/t today to INR 35,500/t exw on the back of higher coal prices. On a weekly basis, prices have also moved up by INR 2,200/t.

Indian pellet market overview:

The Barbil pellet market witnessed active trade this week. Sales of 150,000 t of pellets (Fe 63%) were recorded at INR 11,600-11,900/t loaded on to wagon earlier this week. SteelMint's assessment for Barbil iron ore pellet (Fe 63%) currently stands at INR 12,250/t loaded on to wagon.

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 10,000 t and considered as T1 trade for calculation of the index, given 50% weightage.

Eight (6) firm offers and indicative prices were reported. Four were from Raipur and the rest from outside the state capital. All were taken for the price calculation and given a weightage of 50%.

SteelMint received no bids and hence was none were considered for calculation of the index.