SteelMint: PELLEX continues to increase further by INR 200/t in recent deals

SteelMint’s bi-weekly domestic pellet index “PELLEX ” has increased further by INR 200/t to INR 13,600/t DAP Raipur in the recent deals. Confirmed deals of around 23,000 t pellet (Fe 62.5-63%) were booked by Raipur based players at INR 13,350-13,650/t (DAP Raipur) in this publishing window.

One of the major pellet makers from Raipur has increased pellet (low al) offers by INR 500/t to INR 14,000/t (ex-plant) yesterday. However, others are holding offers at INR 13,000-13,500/t (ex-plant) for Fe 62.5/63% grade pellet.

Notably Raipur pellet offers have already reached an all-time high since May’15, as per data maintained with SteelMint. Consistent hike in iron ore lump offers has kept the demand for pellets supported. Odisha’s Essel Mining has increased INR 500/t further in both lump and fines towards the end of last week. Offer for lump (5-18 mm, Fe 62%) stands at INR 10,300/t (ex-mines, including Royalty, DMF & NMET) and that of fines at INR 7,000/t. The miner has raised lump offers by INR 2,200/t in two weeks.

Pellet sponge (P-DRI) price in Raipur also increased today further by INR 300/t to INR 30,300/t exw against yesterday. On a weekly basis, prices have also moved up significantly around INR 2,300/t. However, lesser trades in sponge & finished long steel has slightly limited the bullish sentiments.

Indian pellet market overview-:

Western India-based – Jindal SAW Ltd has increased its pellet offer by INR 750/t w-o-w. The current offer for Fe 63% grade pellets stands at INR 14,750/t DAP Kandla, SteelMint learned from sources.

Pellet offers across the all the producing regions have continued to increased sharply today by INR 400-800/t.

Rationale – PELLEX has been derived using data points: i.e., trades, offers and bid. You can download the detailed methodology by clicking on this link  Click here

• Three deals have been concluded in this publishing window and considered in the index calculation with 50% weightage.
• Total only Five firm offers were reported this week out of that three from Raipur and two from outside Raipur. All were taken for price calculation and given a weightage of 50%.
• However, SteelMint has also received two bids in his publishing window and both wer not taken into consideration as they were not fallen under the SteelMint methodology.

Region-wise pellet deals and offers: