SteelMint’s bi-weekly domestic pellet index “PELLEX” has increased sharply by INR 400/t to INR 11,950/t DAP Raipur. No deal has been reported for the Raipur market in this publishing window.
Pellet makers in Raipur have increased offer by INR 300-500/t to INR 11,800-12,000/t (ex-plant) following hike in offer announced by NMDC yesterday. Offer from Jharsuguda has also increased by INR 200-300/t to 11,850-11,950/t (DAP, Raipur).
India’s largest and state-owned iron ore miner, NMDC, has raised iron ore fines prices by INR 500/t and lump (DR CLO) prices by around INR 820/t w.e.f 15th Dec’20.
Pellet sponge (P-DRI) prices have increased by around INR 100/t w-o-w to INR 25,100/t exw, Raipur. However, on a daily basis, prices have remained largely stable.
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%.
- Three firm offers were reported this week and all offers were taken for price calculation at INR 11,950-12,150/t (DAP, Raipur) and the rest four from outside Raipur at INR 11,750-12,100/t (DAP, Raipur) and given a weightage of 100%.
- One firm bid reported in this publishing window but not considered for price calculation and given weightage 0%.
- 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 10,630/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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