PELLEX stable; limited trades reported on falling DRI prices

PELLEX remains stable at INR 6,050/wmt (DAP Raipur) in this publishing window.

A pellet maker was reported to sold around 5,000t pellets in Raipur at INR 5,900-6,000/t (DAP, Raipur) recently.

SteelMint P-DRI assessment (June 12, 2020) moved down sharply by INR 400/t to INR 15,700/t (Ex-plant) as against the last assessment (on 09th June 2020) at 16,100/t. Prices have come down on demand-supply mismatch.

Pellets offer from Raipur and nearby location-:

— Raipur based pellet offers stand stable at INR 6,000/t (Ex-plant); normalizing for freight to Raipur at INR 6,150/t (DAP Raipur).

— Raigarh based pellet makers offer stable at INR 5,600-5,700/t (Ex-plant) in this window of Index.

Deals from other regions-:

— Bellary based pellet makers sold around 7,000 MT pellets in the local market at around INR 5,700-5,950/t (Ex-plant) recently.

Iron ore loading from NMDC Chhattisgarh mines suspended-:

— As per the reports, owing to issues of the requirement of storage license at the loading plants of NMDC’s Chhattisgarh mines, iron ore loading & dispatches have been temporarily suspended.

If market sources are to be believed, this issue of iron ore storage licenses may not be tenable for a longer duration. However, dispatches from Chhattisgarh mines are expected to remain suspended for the next couple of days. Mining operations continue to remain undisturbed- SteelMint learned from its sources.

Click here to see SteelMint Pricing Methodology and Rationale documents.