SteelMint’s bi-weekly domestic pellet index “PELLEX” decreased further by INR 100/t today (29th Sept’20) to INR 8,400/t, DAP Raipur on limited buying. Single deal has been recorded from outside Raipur based supplier in this publishing window.
Major pellet buyers are less interested to procure pellets at current offers. As per the data maintained by SteelMint, no significant pellet deal has been reported since last two weeks.
Pellet sponge (P-DRI) prices have remained stable on weekly basis and currently stands at INR 18,800/t exw-Raipur against INR 18,750/t a week before. However, prices have increased by around INR 200/t in last two days.
Rationale – 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.
- Single deal has been reported from outside Raipur for around 2,000 t at INR 8,350/t (DAP Raipur) in this publishing window. The transaction was taken into consideration for price calculation and given weightage given 66.7%.
- Four firm offers were reported this week at INR 8,950/t (DAP, Raipur) and the rest three from outside Raipur at INR 8,450-8,550/t (DAP, Raipur) which have been given a weightage of 16.7%.
- Three firm bids have been reported and all bids were taken for price calculation at INR 8,150-8,350/t DAP, Raipur in this publishing window, and given a weightage of 16.7%.
- 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 7,450/t and given a weightage of 0%.
- The export realization factor has not been considered as pellet makers are less active in exports owing to an increased domestic realization and heated discussions on illegal pellet exports from India.
Calculation of Index:
Source-: SteelMint
Region-wise pellet deals and offers:
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