SteelMint’s bi-weekly domestic pellet index “PELLEX ” has moved down marginally by INR 50/t to INR 12,050/t DAP Raipur. A deal of 5,000 t pellet (Fe 62.5%) was concluded by a Raipur based player at 11,850/t (DAP Raipur) in this publishing window.
Pellet demand in the central India’s domestic market continues to remain sluggish as their bids are significantly lower than the prevailing offers.
For majority of plants in Raipur, sponge kiln feed has now been shifted to NMDC’s DR CLO and lumps from Odisha. Others are still getting deliveries of their previous pellet bookings, highlighted a leading Raipur based sponge maker.
In the upcoming days, availibility of lumps ore in the merchant market expected to increase further as OMC has scheduled next iron ore e-auction on 31st Mar’21. The auction is being conducted for 1.13 mn t iron ore lumps. In addition to its mines Daitari, Gandhamardhan, Koira, and Tiringpahar, the miner has offered material from its newly acquired Guali and Jilling mines. The miner has raised base price upto INR 550/t ($8) against its last auction held on early Feb’21.
Pellet sponge (P-DRI) price in Raipur has increased today by INR 500/t to INR 27,500/t as against yesterday’s offer. On a weekly basis, prices have also moved up around INR 300/t.
Indian pellet market overview-:
Pellet offers across the key producing regions have remained stable except Bellary, although only few deals have been reported in this publishing window.
However, Bellary based pellet players have decreased their offer further by around INR 200-300/t. As per the sources, increased costing of sponge makers due to hike in coal prices has led to lowering bids for pellets.
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
- One deal has been concluded in this publishing window and considered in the index calculation with 50% weightage.
- Total four firm offers were reported this week out of that two from Raipur and the rest two from outside Raipur. All were taken for price calculation and given a weightage of 50%.
Region-wise pellet deals and offers:
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