SteelMint’s bi-weekly domestic pellet index “PELLEX ” decreased by INR 100/t to INR 17,200/t DAP Raipur. No deal was reported in this publishing window.
Pellet offers stable – Raipur (Central India) based pellet manufacturers have kept the offers stable. 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 continue to remain away from domestic market as they are booked for exports.
Raigarh and Jharsuguda based pellet makers have also kept the offers stable. However, a major pellet maker from Raigarh resumed pellet offer in the domestic market after a long gap of one month.
Bid-offer disparity continues to prevail – A few Raipur based sponge makers are bidding around INR 16,000/t exw. As per the market sources reported to SteelMint buyers in Raipur are mostly preferring NMDC DRCLO over pellets owing to cost effectiveness and better realization. Pellet is still costlier than NMDC DRCLO despite a price hike by NMDC made last week.
According to the railway movement data track by SteelMint, NMDC dispatched 14 iron ore rakes to Chhattisgarh-based plants in a week ending 14 May’21 against 11 rakes a week ago. However, it will be interesting to see how demand-supply for NMDC ore will panout amid pandemic outbreak.
Few sponge makers in Raipur are offering pellet in resale at INR 16,000/t (exw) in the local Raipur market. Though no deal has been heard so far highlighted by one of the Raipur buyers to SteelMint.
Pellet sponge (P-DRI) prices in Raipur have decreased by around INR 900/t w-o-w to INR 30,400/t exw today. However, on a daily basis prices have decreased sharply by INR 600/t.
Indian pellet market overview-:
India pellet prices across the pellet making regions remained stable owing to lack of demand and fall in sponge prices 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
- No deals were reported in this publishing window and hence not considered in the index calculation and kept the 0% weightage.
- Seven 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 100%.
- SteelMint has also received two bids in this publishing window but they were not qualified for price calculation in this publishing window.
Region-wise offers and deals:
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