PELLEX up marginally in recent trades & increase in global prices

PELLEX increased marginally by INR 50 to INR 6,050/wmt (DAP Raipur) in this publishing window.

As per the market participants, Raipur based pellet makers have sold around 35,000 MT pellets at INR 6,000-6,100/MT (DAP Raipur) in the last three-four days in the local market.

Pellets offers increase in eastern and western India-:

— Raipur based pellet offers remain stable at INR 6,000/MT( Ex-plant); normalizing for freight to Raipur at INR 6,150/MT (DAP Raipur).

— Raigarh based pellets maker offers unchanged at INR 5,600-5,700/MT (Ex-plant) in this window of publishing index.

— Pellet makers in Durgapur and Jamshedpur raised offers by INR 200-300/MT yesterday.

— Also Jindal SAW has raised its domestic pellet (Fe 63%) offer by INR 200 to INR 8,400/MT (delivered Kandla), This increase in price is outcome of the hike in global iron ore fines price seen yesterday.

Deals from other regions-:

— Raigarh based pellet maker has concluded around 15,000-20,000 MT pellet deal in the local Raigarh market at INR 5,500-5,600/MT (ex-plant) in the last three-four days.

— Bellary based pellet makers sold around 20,000 MT pellets in the local market at around INR 5,900-6,200/MT (Ex-plant) recently.

— An Odisha (Barbil) based pellet maker has also sold two rakes of pellets (approx. 8,000MT) deal in the local market at around INR 5,500/MT (Loaded to wagon).

SteelMint assessment for Fe 64% grade pellets with 3% Al increased by around USD 3/MT to USD 116-118/MT, CFR China against last week’s assessment at USD 113-115/MT, CFR China. Few deals from central & eastern India are under negotiation and are likely to get concluded soon.

Following global iron ore fines price hike yesterday, pellet export offers have also increased but there is resistance seen from buyers end at higher offers, shared trade sources.

Click here to see SteelMint Pricing Methodology and Rationale documents.