SteelMint’s bi-weekly domestic pellet index “PELLEX” has remained unchanged on Friday also (i.e 2nd Jul 2020) at INR 5,900/t DAP Raipur. This price has been derived using five data points: i.e trades, offers, bids, substitute parity, and export realizations. You can download the detailed methodology by clicking on this link Click here
Assigning weightage to data points-:
1. One transaction of 8,000t was reported at INR 5,900/t (DAP, Raipur) from Odisha (Jharsuguda) in this publication window. This transaction was given a 57.1% weightage in the index.
2. Eight offers were considered for calculation in this window with an average price of Rs 6,056/t (DAP Raipur) and given a weight of 14.3%.
3. No firm bids were recorded in the publishing window. No weightage has been assigned.
4. SteelMint calculated the price at which Raipur pellet can displace NMDC lump in the sponge rotary kiln feed (substitute parity) on a DAP Raipur basis at Rs 5,700/t and given a weight of 14.3%. It may be noted that NMDC has increased its iron ore prices (w.e.f 30th Jun)
5. The export realization was calculated by SteelMint at Rs 5,850/t DAP Raipur based on a FOB east coast assessment of $97/t on 01 Jul’20 and was given a weightage of 14.3%. However, no deal has been concluded so far this week. Chinese buyers were reluctant to book cargoes over the last few days.
Calculation of Index-:
Source-: SteelMint Research
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