SteelMint’s bi-weekly domestic pellet index “PELLEX” rose by INR 100/t on Friday (17th Jul 2020) to INR 6,300/t DAP Raipur on a recent deal in Odisha. Pellet export prices remain supported on the back of strong Chinese buying.
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 around 20,000t was reported at INR 6,330/t (DAP, Raipur) in this publication window. This transaction was given a 57% weightage in the index.
- Five offers were considered for calculation in this window with an average price of INR 6,340/t (DAP Raipur) and given a weightage of 14.3%.
- No firm bids were recorded in the publishing window.
- 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 5,840/t and given a weightage of 14.3%.
- The export realization was calculated by SteelMint at around Rs 6,600/t DAP Raipur based on a FOB east coast provisional assessment $106/t on 15 Jul’20 and was given a weightage of 14.3%. No pellet export deal has been concluded in this publishing window. However, some of the deals are under negotiations and may conclude soon.
Calculation of Index-:
Source-: SteelMint
Region-wise pellet deals and offers:
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