SteelMint: PELLEX rises INR 350/t on higher sponge iron prices, export deals
SteelMint’s bi-weekly domestic pellet (Fe 63%) index, PELLEX, stands at INR 11,150/tonne (t) DAP Raipur on 11 Jan’22, up INR 350/t against the last as...
SteelMint's bi-weekly domestic pellet (Fe 63%) index, PELLEX, stands at INR 11,150/tonne (t) DAP Raipur on 11 Jan'22, up INR 350/t against the last assessment on 7 Jan'22. Around 35,000 t of deals were reported this week.
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.
- Three deals were reported out of which two were considered in this publishing window as T1 trades for calculation of the index; accorded 50% weightage.
- Ten (10) firm offers and indicative prices were reported. Eight (08) were taken for price calculation and given 50% weightage.
- SteelMint received two bids at INR 10,650-10,750/t DAP Raipur which were not considered for calculation of the index.
Central India-based pellet-makers hiked offers by around INR 300-500/t to INR 11,000-11,500/t exw. Price indications in Jharsuguda, Odisha also increased to INR 10,200-10,500/t exw on 11 Jan.
As per sources, spurt in coal prices, regaining exports momentum and a few domestic deals done in the last few days resulted in prices increasing in Raipur and other pellet producing regions.
The Indian pellet export market continued to witness upward momentum this week. In a recent deal for 55,000 t of pellets (Fe 63%, 3.5% Al) from eastern India was concluded at $162-164/t CFR China for Jan'22 loading, sources confirmed. The rise in global iron ore prices over the last week boosted pellet export prices by around $5-7/t compared to last week.
Pellet-based DRI (P-DRI, FeM 80%) prices rose by INR 300/t to INR 32,000/t exw Raipur today. On a weekly basis, prices increased by around INR 1,200/t. Prices remain strong on limited supplies in the spot market and higher coal, billet prices.
South African RB2 (5500 NAR) coal deals were concluded on 10 Jan at INR 12,950/t at Mangalore Port amid limited stocks. Offers were at INR 12,700/t at Gangavaram Port.
Indian pellet market overview: The Indian pellet market saw a spurt in offers across regions in the range of INR 100-400/t except in Bellary and western India.
SteelMint's assessment for iron ore pellet (Fe 63%) prices in Bellary remained stable at INR 10,250/t exw today. Confirmed deals for 8,000 t were confirmed at INR 10,100-10,500/t exw.
Region-wise pellet offers and deals:
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