SteelMint: PELLEX stable amid limited trade, market awaits NMDC's iron ore price revision

SteelMint's bi-weekly domestic pellet (Fe 63%) index, PELLEX, inched down by INR 50/t to INR 9,250/t DAP Raipur on 28 April 2023 compared to the previous assessment on 25 April. PELLEX prices are largely stable owing to lack of trade in the region.

Rationale:

• PELLEX has been derived using data points, i.e. trades, offers and bids. To download the detailed methodology, Click here.
  
  
• Two deals were reported so far this week and taken into account for price calculation and accorded 50% weightage for T1 trade.
  
  
• Ten (10) firm offers, bids and indicative prices were heard. Nine(9)were taken for price calculation and given the balance 50% weightage.
  
  
• Three (3) bids were received and two (2) were taken into account for price calculation.
  
  

Raipur-based pellet producers offered the Fe 63% grade at INR 9,200-9,300/t ($112-113/t) exw. Godawari Power and Ispat Ltd (GPIL) has kept pellet (Fe63.5% +/-0.5) offers stable at INR 9,500/t exw ($116/t) from 19 April 2023. One of the Raipur-based producers concluded a 15,000 t deal of raw pellets at INR 9,100/t exw in this publishing window.

Currently, market players are buying material on need basis. Most buyers are on a wait-and-watch mode as they wait for NMDC's iron ore price revision.

SteelMint's price assessment for sponge P-DRI (FeM 80%) in Raipur fell by INR 750/t w-o-w to INR 29,300/t exw. Prices decreased by INR 150/t d-o-d. Meanwhile, the semi-finished steel market saw a dull day. Prices fell on weak buying activity and limited trade throughout the day.

Region-wise offers and deals: