SteelMint’s bi-weekly domestic pellet index “PELLEX” increased by another INR 50/t on Tuesday (08th Sept’20) to INR 8,750/t DAP in recent deals. Around 14,000 t deals were reported by a Raipur based pellet maker in this publishing window.
A Raipur based pellet maker has hiked offers further by INR 200/t to INR 9,350/t (DAP, Raipur) yesterday. One of the Raipur based pellet makers still on maintenance shut down. However, Jharsuguda and Raigarh based pellet makers have resumed offers this week post maintenance shut down.
Essel Mining (Odisha) has increased iron ore offers for fines INR 300/t and lumps INR 500/t last week amid an increasing shortage of raw material.
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
Assigning weightage to data points:
- Two deals concluded in the local Raipur market by a pellet maker cumulatively around 14,000 t at INR 8,950-9,150/t (DAP, Raipur) in this publishing window. They were considered for price calculation and given a weightage of 66.7%.
- Three firm offers were reported this week at INR 8,950-9,350/t (DAP, Raipur) and the rest four from outside Raipur at INR 9,150- 9,250/t (DAP, Raipur) which have been given a weightage of 16.7%.
- One firm bid was reported but not considered for the price calculation 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 7,300/t and given a weightage of 16.7%.
- 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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