SteelMint: PELLEX remains stable on unchanged offers, limited trade

SteelMint's bi-weekly domestic pellet (Fe 63%) index, PELLEX, stood at INR 8,000/tonne (t) DAP Raipur, stable compared to the last assessment on 21 October, 2022 amid limited deals. Around 5,000-10,000 t of deals were reported in this publishing window. The ongoing festive season has continued to limit trades.

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 and considered in this publishing window hence accorded 50% weightage for T1 trade.
  
  
• Seven (07) firm offers, bids and indicative prices were reported. Five (05) were taken for price calculation and given another 50% weightage.
  
  
• SteelMint has received no bids in this publishing window.
  
  

Raipur-based pellets producers kept their offers (Fe 63%) stable at INR 8,000-8,100/t ($97-99/t) exw against the last assessment. Meanwhile, Godawari Power and Ispat Ltd (GPIL) kept offers stable at INR 8,500-8,600/t exw ($103-104/t). No offer was heard from the Jharsuguda-based pellet player this week as well.

However, a few buyers indicated that ongoing offers are likely to witness a correction by INR 100-200/t.

SteelMint's price assessment for sponge P-DRI (FeM 80%) in Raipur moved up to INR 32,000/t exw w-o-w, as against INR 31,300/t exw on 19 October. On a daily basis, sponge iron prices remained rangebound against 22 October.

Region-wise pellet offers and deals: