SteelMint’s bi-weekly domestic pellet index “PELLEX” remained stable today (06th Oct’20) at INR 8,400/t, DAP Raipur. Around 50,000 t deals have been concluded by Raipur based pellet makers in this publishing window of SteelMint index.
Raipur based pellet makers lowered offers yesterday by around INR 500/t to INR 8,200-8,300/t exw against the last offer of INR 8,700-8,800/t. Trades have picked up after decline in offers.
Pellet sponge (P-DRI) prices have increased by around INR 700/t to INR 19,500/t exw, Raipur against INR 18,800/t on Saturday 3rd Oct. On weekly basis prices have increased by around INR 1,000/t against INR 18,500/t a week ago.
Rationale – PELLEX 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.
- Multiple deals have been reported in Raipur for around 50,000 t at INR 8,350-8,450/t (DAP Raipur) in this publishing window. The transaction was taken into consideration for price calculation and given weightage given 80%.
- Four firm offers were reported this week at INR 8,450/t (DAP, Raipur) and the rest three from outside Raipur at INR 8,300-8,550/t (DAP, Raipur) which have been given a weightage of 20%.
- No firm bid has been reported in this publishing window, and given a weightage of 0%.
- 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 7,600/t and given a weightage of 0%. The market awaits NMDC iron ore price revision for the month of Oct’20.
- The export realization factor has not been considered as pellet makers are less active in exports owing to an increased domestic realization.
Calculation of Index:
Source-: SteelMint
Region-wise pellet deals and offers:
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