SteelMint’s bi-weekly domestic pellet index “PELLEX” remained stable today at INR 12,350/t DAP Raipur. No pellet deal has been reported in this publishing window. Raipur based pellet makers have kept their offers stable at around INR 12,450-12,750/t (DAP, Raipur).
Pellet offers from Jharsuguda have also remained stable at 12,150/t (DAP Raipur).
Market sources highlighted limited buying inquiries considering previous pellet inventories in hand, usage of NMDC DR CLO and decline in P-DRI prices. Pellet sponge (P-DRI) prices in Raipur have decreased by INR 600/t w-o-w to INR 26,000/t ex-plant this week.
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 deal has been concluded in this publishing window therefore it was not considered for price calculation and weightage given 0%.
- Four firm offers from Raipur players were reported this week and only three offers were taken for price calculation at INR 12,450/t (DAP, Raipur) and the rest four from outside Raipur taken for price calculation at INR 12,150-12,500/t (DAP, Raipur) and given a weightage of 100%.
- No firm bid was reported in this publishing window hence 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 11,600/t and given a weightage of 0%.
- The export realization factor was not considered for price calculation as no trades for export reported despite ex-plant realization for domestic and export have come at par with hike in global prices. Hence, pellet export realization has been given a weightage of 0% in this publishing window.
Calculation of Index:
Source-: SteelMint
Region-wise pellet deals and offers:
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