SteelMint’s bi-weekly domestic pellet index “PELLEX ” has increased sharply by INR 1,200/t to INR 14,700/t DAP Raipur in the recent deals. Around 47,000 t pellets deals have been reported in this publishing window, out of which around 22,000 t deals were also booked from outside Raipur based supplier at INR 14,200/t DAP, Raipur.
Raipur based pellet makers increased offers sharply by around INR 1,000-1,500/t to INR 14,500- 15,000/t exw for Fe 63/62.5% grade. Pellet makers had raised offers following hike in NMDC prices announced on 14 Apr’21.
India’s largest merchant and govt-owned iron ore miner, NMDC has announced a second price hike for Apr’21, SteelMint learned from credible sources. The price of DR CLO (Fe 67%) has been increased by INR 1,280/t, Baila lump by INR 1,100/t and that of fines by INR 500/t.
While talking to SteelMint, one of major buyers of Raipur revealed that they have shifted their kiln feed to NMDC ore despite price hike by NMDC announced twice this month.
Pellet sponge (P-DRI) price in Raipur also increased sharply by INR 1,900/t w-o-w to INR 30,900/t exw against last week. On a daily basis also, prices have moved up by around INR 200/t.
Indian pellet market overview-:
Pellet makers across the markets pellet offers around INR 250-950/t in this publishing window on the back of hike in iron ore prices. NMDC has increased base price for today’s auction from Kumarswamy mines Karnataka as well.
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
- Decent no. of deals have been reported in this publishing window and all were considered in the index calculation and kept the weightage 50% weightage.
- Five firm offers and bids were reported and out of those three offers from Raipur and two from outside Raipur. Four were taken for price calculation and given a weightage of 50%.
Region-wise pellet offers and deals:
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