SteelMint: PELLEX increases further by INR 600/t as offers hit record high

SteelMint’s bi-weekly domestic pellet index “PELLEX ” has increased sharply by INR 600/t to INR 13,400/t DAP Raipur in a recent deals and hike in offers. Confirmed deals of around 25,000 t pellet (Fe 63%) were reported by a Raipur based pellet makers at 12,850-13,650/t (DAP Raipur) in this publishing window.

Central India based pellet makers had increased offers yesterday to INR 13,000-13,500/t (ex-plant). Notably Raipur pellet offers have climbed to all-time high since May’15, as per data maintained with SteelMint. As per the SteelMint’s analysis, domestic pellet trades have increased this week and around 55,000 t pellet trades were recorded by us after OMC and other merchant miners raised offer for lumps recently.

Sharp hike in iron ore lump offers has kept the demand for pellets supported. Odisha’s based miner – Essel Mining increased iron ore lump offers further by INR 1200/t. Offer for lump (5-18 mm, Fe 62%) stands at INR 9,800/t (ex-mines, including Royalty, DMF & NMET). Similarly fines offer was has also been increased by around INR 725/t. Market participants expect NMDC to revise prices upwards, however no confirmation has been received yet.

Pellet sponge (P-DRI) price in Raipur also increased sharply today by INR 700/t to INR 30,000/t exw against yesterday. On a weekly basis, prices have also moved up significantly around INR 2,500/t.

Indian pellet market overview-:

Pellet offers across the key producing regions have increased sharply by INR 200-800/t specially in eastern and Central India. Bellary pellet offers also increased sharply around INR 600/t today.

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

• Five deals have been concluded in this publishing window and considered in the index calculation with 50% weightage.
• Total only three firm offers were reported this week out of that two from Raipur and one from outside Raipur. All were taken for price calculation and given a weightage of 50%.

Region-wise pellet deals and offers: