SteelMint’s bi-weekly domestic pellet index “PELLEX” decreased by INR 200/t on today (29th Sept’20) to INR 8,500/t DAP Raipur. No trade has been recorded in this publishing window with market sources expecting a fall in Raipur pellet offers soon.
SteelMint’s price assessment for other key markets like Durgapur, Bellary have fallen by INR 100-400/t w-o-w.
Major pellet buyers are still not willing to buy pellet at current offers. As per the data maintained by SteelMint, no significant pellet deal has been reported since last two weeks.
Pellet sponge (P-DRI) prices have moved down sharply around INR 600/t to INR 18,500/t exw-Raipur against INR 19,100/t a week before. Limited buying inquiries have kept sponge prices under pressure.
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
- No deal has been reported in this publishing window. Transaction weightage remained nil.
- Four firm offers were reported this week at INR 8,950/t (DAP, Raipur) and the rest three from outside Raipur at INR 8,450-8,550/t (DAP, Raipur) which have been given a weightage of 50%.
- Four firm bids have been reported but only two bids taken for price calculation at INR 8,150/t DAP, Raipur in this publishing window, and given a weightage of 50%.
- 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 0%.
- The export realization factor has not been considered as pellet makers are less active in exports owing to an increased domestic realization and heated discussions on illegal pellet exports from India.
Calculation of Index:
Source-: SteelMint
Region-wise pellet deals and offers:
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