SteelMint’s bi-weekly domestic pellet index “PELLEX” increased sharply by INR 350/t on Tuesday (04th Aug’20) to INR 7,200/t DAP Raipur amid an increase in offer prices and deals as iron ore supply tightened in the months of monsoon. Raipur-based pellet makers raised offers by INR 400/t yesterday. Also, P-DRI prices have increased by INR 1,000/t against the last assessment on 31st Jul.
The PELLEX 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:
- One transaction of 3,000 t was reported at INR 7,350/t (DAP, Raipur) yesterday by a Raipur based pellet maker. This transaction was given a 66.7% weightage in the index. Another deal of 7,000 t was done on Saturday at around INR 6,950/t (DAP, Raipur) was not considered for price calculation as it was lower than the average price.
- Four firm offers were reported this week at INR 7,350-7,400/t (DAP, Raipur) which have been given a weightage of 16.7%.
- No firm bids were reported in this publishing window.
- 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 INR 6,350/t and given a weightage of 16.7%.
- The export realization factor has not been considered as pellet makers are less active in exports owing to an increase in domestic demand.
Calculation of Index:
Source-: SteelMint
Region-wise pellet deals and offers:
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