SteelMint’s bi-weekly domestic pellet index “PELLEX” has inched up by INR 50/t on Tuesday (i.e 7nd Jul 2020) to INR 5,950/t DAP Raipur. 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-:
1. One transaction of 5,000t was reported at INR 5,950/t (DAP, Raipur) in this publication window. This transaction was given a 57.1% weightage in the index.
2. Six offers were considered for calculation in this window with an average price of Rs 6,033/t (DAP Raipur) and given a weight of 14.3%.
3. No firm bids were recorded in the publishing window. No weightage has been assigned.
4. 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 Rs 5,700/t and given a weight of 14.3%.
5. The export realization was calculated by SteelMint at around Rs 6,000/t DAP Raipur based on a FOB east coast provisional assessment $99/t on 07 Jul’20 and was given a weightage of 14.3%. One pellet export deal has been concluded for around 55,000 t(Fe 64% grade pellets with 3% Al) recently to China at around USD 112/t, CFR China for July shipment.
Calculation of Index-:
Source-: SteelMint Research
Leave a Reply