SteelMint’s bi-weekly domestic pellet index “PELLEX” has decreased further by INR 100/t to INR 11,400/t DAP Raipur. No deal has been reported for Raipur market in this publishing window.
Pellet makers in Raipur have kept their offers unchanged at INR 11,500/t (ex-plant). However offers from Jharsuguda have increased by INR 100-200/t.
As per the market sources, Raipur based buyers are more interested in booking DR-CLO for NMDC. Bulk pellet buyers are not much interested in booking pellet at current quoted offers.
Pellet sponge (P-DRI) prices have decreased by around INR 50/t d-o-d to INR 25,000/t exw, Raipur. On weekly basis, prices have remained largely unchanged.
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.
- No pellet deal has been concluded in this publishing window therefore it was not considered for price calculation and weightage given 0%.
- Five firm offers were reported this week and only four offers were taken for price calculation at INR 11,650/t (DAP, Raipur) and the rest four from outside Raipur at INR 11,300-11,600/t (DAP, Raipur) and given a weightage of 50%.
- Three firm bids reported but only two have considered in price calculation at INR 11,050-11,350/t in this publishing window, and given a weightage of 50%.
- 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 9,800/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.
Calculation of Index:
Source-: SteelMint
Region-wise pellet deals and offers:
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