SteelMint: PELLEX increases marginally in recent deal

• Around 5,000-10,000 t pellet deals concluded by a Raipur pellet maker
• Few Raipur based pellet makers have kept their fresh domestic bookings on hold on higher export realizations

SteelMint’s bi-weekly domestic pellet index “PELLEX ” has increased slightly by INR 50/t to INR 11,750/t, DAP Raipur in recent trade. Around 5,000-10,000 t pellet deals concluded for Fe 62.5% grade by a Raipur based pellet maker for Raipur along with nearby markets.

A couple of Raipur based pellet makers have kept their offers and bookings on hold after recently concluded export bookings.

Jharsuguda based pellet maker has kept its offer stable at INR 11,300-11,400/t exw and have concluded pellet deals for 4,000 t at the same offer. Raigarh based pellet maker also concluded one deal for around 6,000 t pellet at INR 11,500/t exw yesterday and are holding the same offers.

Buyers in raipur are less interested to purchase pellet at the prevailing offers as most of the sponge makers have shifted their kiln feed to iron ore lumps and DR-CLO. That has led the demand for pellet made very limited in the market.

Pellet sponge (P-DRI) prices in Raipur have increased sharply on a weekly basis to INR 27,200/t as against INR 25,400/t exw assessed last week. On a daily basis prices have decreased by around INR 200/t.

Rationale – PELLEX has been derived using data points: i.e., trades, offers and bid. You can download the detailed methodology by clicking on this link Click here

• Few deal have been concluded in the local and outside Raipur market for 5,000-10,000 t (Fe 62.5%) at INR 11,650/t (DAP,Raipur) and given a weightage of 66.7%.
• Four firm offers from Raipur players were reported this week and all offers were taken for price calculation at INR 11,650-12,150/t (DAP, Raipur) and the rest four from outside Raipur at INR 12,000-12,250/t (DAP, Raipur) and given a weightage of 33.3%.
• No firm bid was reported in this publishing window therefore not considered for price calculation and given 0% weightage in the index.

Calculation of Index:

Source-: SteelMint

Region-wise pellet deals and offers: