SteelMint: PELLEX remains stable on supported iron ore prices

SteelMint’s bi-weekly domestic pellet index “PELLEX ” continues to remain stable at INR 14,550/t DAP Raipur. Two deals  total quantity of 8,000 t pellet have been reported in this publishing window at INR 14,200-14,400/t DAP, Raipur.

Raipur based pellet makers have kept the offers stable at INR 14,500- 15,000/t exw for Fe 63/62.5% grade. Higher iron ore prices have kept pellet offers supported apart from higher pellet export prices.

NMDC’s iron ore auction from Chhattisgarh mines conducted today fetched active participation. Offered quantity comprised 147,000 t of fines, 16,800 t DR-CLO and rest 16,800 comprised of ROM. According to market sources report to SteelMint, the auction received aggressive response with bids moving up by around INR 280/t in fines, INR 930/t in DR-CLO, INR 300/t in ROM and INR 600/t in lump over the set base price. Tighter availability of high-grade ore in Odisha has resulted in increased bids in today’s auction.

However, Pellet sponge (P-DRI) prices in Raipur have decreased by around INR 500/t w-o-w to INR 28,750/t exw today. On a daily basis also, prices have moved down marginally by around INR 50/t.

Indian pellet market overview-:

India pellet prices across the regions remained stable except Jharsuguda witnessing hike by around INR 200/t in this publishing window. Pellet trades remained limited owing to lock-down restrictions. However, in Southern India-based, pellet prices have come down by INR 150/t w-o-w.

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

• Two deals were reported in this publishing window and all were considered in the index calculation and kept the weightage 50% weightage.
• Six firm offers were reported and three were offered from Raipur and the rest offers from outside Raipur. All were taken for price calculation and given a weightage of 50%.
• Two firm bids also received in this publishing window however only one was considered for price calculation in this index.

Region-wise pellet offers and deals: