SteelMint’s bi-weekly domestic pellet index “PELLEX ” increased sharply by INR 900/t to INR 17,300/t DAP Raipur in the recent deals. Two deals with a total quantity of 15,000 t pellet were reported in this publishing window at INR 16,650-17,150/t DAP, Raipur.
Pellet offers rise further – Raipur (Central India) based pellet manufacturers have increased offers further sharply by around INR 1,500-2,000/t recently. The current offer for Fe 62.5/63% pellet stands at INR 17,500-18,500/t exw Raipur. Two major Raipur based pellet makers are still not offering in the domestic market as they are booked for exports.
However, with recent decline in Chinese iron ore & steel futures, sellers have adopted a “wait and watch” approach. Raigarh and Jharsuguda based pellet makers have also increased offers by INR 500-600/t exw owing to limited offers in the market.
NMDC had announced a price hike of 30% in fines and 10% in lumps w.e.f 12th May. Odisha ‘s Serajuddin and Essel Mining also raised iron ore offers by INR 1,500-1,700/t this week which have also resulted in hike in pellet offers.
Disparity in bids and offers – Buyers price idea is quite lower than the current ongoing offers and few indicated bids at INR 16,000 exw Raipur. As per the market sources, few sponge makers in Raipur are offering pellet in resale at INR 16,000/t (EXW) in the local Raipur market.
Pellet sponge (P-DRI) prices in Raipur have increased by around INR 2,400/t w-o-w to INR 31,400/t exw today. However, on a daily basis prices have decreased sharply by INR 600/t today.
Indian pellet market overview-:
India pellet prices continued to increase sharply around INR 550-1,750/t across the markets. Bellary based pellet makers have raised offers by around INR 1,200/t in this publishing window.
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 but a single deal was considered in the index calculation and kept the 50% weightage.
- Five firm offers were reported and two were offered from Raipur and the rest from outside Raipur. All were taken for price calculation and given a weightage of 50%.
- SteelMint has also received two bids in this publishing window but they were qualified for price calculation in this publishing window.
Region-wise offers and deals:
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