SteelMint: PELLEX up INR 150/t on active trading

SteelMint’s bi-weekly domestic pellet index, PELLEX, increased by INR 150/t to INR 14,550/t DAP Raipur on 6 Aug’21. Around 30,000 t of pellet deals were concluded in this publishing window. Current offers from Raipur-based pellet producers stand at INR 14,200-14,500/t exw, SteelMint learnt from sources.

A Jharsuguda-based producer has decreased offers by around INR 300/t to INR 14,300/t exw.

NMDC cuts iron ore prices for Aug’21: India’s largest government-owned merchant iron ore miner, NMDC, has cut iron ore prices for Aug’21 deliveries by INR 200-350/t ($3-5/t), SteelMint learnt from sources.

The state-owned miner recorded iron ore rake movements from Chhattisgarh at 339  in Jul’21 against 341 in Jun’21. Iron ore rake movements to Chhattisgarh-based plants were recorded at 66 in Jul’21 compared to 55 a month ago, as per data maintained with SteelMint.

SteelMint’s benchmark pellet sponge (P-DRI, FeM 80%) prices rose by INR 900/t w-o-w to INR 31,000/t exw Raipur on 6 Aug’21. However, on a daily basis, P-DRI prices decreased by around INR 100/t. Sponge iron prices remained strong across markets, even though steel billet prices declined in today’s trade.

Indian pellet market overview-:

SteelMint’s assessment for Durgapur pellet (Fe 63%) stands at INR 14,000-14,400/t exw, down marginally by around INR 200-300/t against the previous assessment.

On the other hand, SteelMint’s assessment for Bellary iron ore pellet (Fe 63%) stands at INR 13,000/t exw, stable as against the last assessment on 3 Aug.

Rationale:

• PELLEX has been derived using data points: i.e., trades, offers and bids. You can download the detailed methodology by clicking on this link Click here.
• Around 30,000 t deal was reported in this publishing window and hence considered as T1 for index calculation, being given 50% weightage.
• Seven (07) firm offers and indicative prices were reported. Three were from Raipur and the rest from outside the state capital. Five were taken for price calculation and given a weightage of 50%.
• SteelMint received no bids and therefore these were not factored into the calculation of the index.

Region-wise pellet deals and offers: