SteelMint’s bi-weekly domestic pellet index “PELLEX” moved up by INR 250/t on Friday (24th Jul 2020) to INR 6,600/t DAP Raipur. Raipur-based pellet makers made limited offers as they have sufficient prior bookings for export & domestic markets. However, offers from Raigarh and Jharsuguda pellet makers have increased for the Raipur market. Increase in Odisha iron ore prices by around INR 350/t supported pellet prices.
This price has been derived using five data points: i.e trades, offers, bids, substitute parity, and export realizations. You can download the detailed methodology by clicking on this link Click here
Assigning weightage to data points:
- One transaction of 2,000-7,000 t was reported at INR 6,750/t (DAP, Raipur) in this publication window by a Durg based manufacturer. This transaction was given a 50% weightage in the index.
- Firm offers were reported from Raigarh and Odisha which have been given a weightage of 12.5%.
- Three firm bids were recorded at INR 6,350-6,550/t (DAP, Raipur) in the publishing window and given a weightage of 12.5%.
- SteelMint calculated the price at which Raipur pellet can displace NMDC lump in the sponge rotary kiln feed (substitute parity) on a DAP Raipur basis at INR 5,900/t and given a weightage of 12.5%.
- The export realization was calculated by SteelMint at around Rs 6,350/t DAP Raipur based on a FOB east coast provisional assessment $103.5/t on 24th Jul’20 and was given a weightage of 12.5%.
- Calculation of Index-:
Source-: SteelMint - Region-wise pellet deals and offers:
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