SteelMint’s bi-weekly domestic pellet index “PELLEX” has increased by INR 150/t to INR 11,550/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 to 11,650/t (DAP, Raipur).
As per the market sources, Raipur based buyers are more interested in booking DR-CLO for NMDC. In yesterday’s NMDC e-auction from its Chhattisgarh mines DR-CLO received bids were up by around INR 1,880/t, ROM by INR 1,300/t and fines by INR 1,200/t above the set base price. Notably, the miner had raised prices upto 14% in Dec’20.
Pellet sponge (P-DRI) prices have increased by around INR 250/t d-o-d to INR 24,800/t exw, Raipur. However on weekly basis, prices down by around INR 400/t.
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 100%.
- No firm bids reported in this publishing window hence not considered for price calculation.
- 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 better domestic realization.
Calculation of Index:
Source-: SteelMint
Region-wise pellet deals and offers:
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