SteelMint: PELLEX witnesses trade volumes falling nearly 70%, m-o-m, in April

SteelMint's domestic iron pellet index, PELLEX, which tracks the central Indian market of Raipur, saw traded volumes declining sharply by nearly 70% m-o-m to 37,000 t in Apr'22 compared with 121,000 t in Mar, as the market remained slow throughout the month on offers staying high amid buyers' expectation of a price correction due to low domestic demand.

Suppliers in Raipur, Chhattisgarh, kept offers elevated in the first half of the month even as the sponge iron and semi-finished steel markets started to fall on sagging demand amid steep prices.

As a result, the index slipped to a three-month low around mid-Apr as competitive offers from nearby regions, especially Odisha and West Bengal, attracted buyers.

However, the index derived some support following the active response at OMC's iron ore auctions from Odisha in mid-Apr following which sponge iron prices increased in central India, although the state-run miner had reduced base prices for the auction.

Towards the end of Apr, however, Raipur suppliers cut prices on low transaction volumes at higher offers resulting in the index slipping further. SteelMint assesses weighted average prices of Fe63% pellet in the Raipur market in Apr at INR 11,795/t DAP Raipur - down 13% from INR 13,811/t in Mar.

PELLEX

Pellex monitors the dynamics of India's largest merchant pellet market - Raipur. Along with recording sales and offers from Raipur-based producers, the index also tracks deals concluded by pellet producers based in other major markets of the country - Odisha, Karnataka and western India - for sponge iron manufacturers in Raipur. It is a mathematically precise index aiming to provide accurate price assessment for traders.