SteelMint’s bi-weekly domestic pellet index “PELLEX” increased further by INR 100/t on Friday (28th Aug’20) to INR 8,100/t DAP in recent trades. Two deals having total quantum of 10,000t were reported by a Raipur and outside city-based pellet maker in this publishing window. Pellet sponge offers have also recovered today by around INR 200/t to INR 19,200/t exw on improved trades.
Raipur pellet makers have kept the offers stable. Few pellet makers in and outside Raipur are not offering pellets owing to a lack of material availability.
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:
- Two domestic pellet deals have been concluded for 10,000 t at INR 8,150-8,350/t (DAP, Raipur) in this publishing window. They were considered for price calculation and given a weightage of 57.1%.
- Two firm offers were reported this week at INR 8,650/t (DAP, Raipur) and the rest two from outside Raipur at INR 8,250-8,750/t (DAP, Raipur) which have been given a weightage of 14.3%.
- Four firm bids were reported but only two of them have been considered for price calculation at INR 7,750 – 8,050/t (DAP, Raipur) in this publishing window and given a weightage of 14.3%.
- 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 6,900/t and given a weightage of 14.3%.
- The export realization factor has not been considered as pellet makers are less active in exports owing to an increased domestic realization.
Calculation of Index:
Source-: SteelMint
Region-wise pellet deals and offers:
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