SteelMint’s bi-weekly domestic pellet index, PELLEX, has declined sharply by INR 850/t to INR 14,700/t DAP Raipur. A Raipur-based pellet maker sold around 20,000-30,000 t pellet in the domestic market after the price cut announced towards the end of last week.
Raipur-based pellet producer, Jayaswal Neco, has cut offers by around INR 1,400/to INR 14,600/t exw by the end of last week.
Another pellet maker from Raipur has taken maintenance shutdown for this week and will resume from next week. Notably, the other Raipur-based players were not seen offering material in the market due to pending export deliveries. Hence, further decline in prices seem unlikely, as per sources.
A Jharsuguda-based producer has decreased offers by around INR 300/t to INR 14,500/t exw. Offers from Raigarh stand stable at INR 14,800/t exw.
SteelMint’s benchmark pellet sponge (P-DRI, FeM 80%) prices rose by INR 500/t w-o-w to INR 29,500/t exw Raipur on 20 Jul’21. On a daily basis, too, prices for P-DRI increased by around INR 300/t. Enquiries remain active following rising billet demand, which has led to an increase in sponge iron prices since the last few days.
Indian pellet market overview-: Bellary pellet prices increased by INR 300/t today on active buying . However, Western India-based Jindal SAW cut pellet offers by around INR 800/t this week owing to competitive landed offers from Bellary.
Rationale:
- PELLEX has been derived using data points: i.e., trades, offers and bids. You can download the detailed methodology by clicking on this link Click here.
- Deals reported in this publishing window that could have been considered as T1 for index calculation and given a 50% weightage.
- Six firm offers and indicative prices were reported. Two were from Raipur and the rest from outside the state capital. Three were taken for price calculation and given a weightage of 50%.
- SteelMint received no bids today for the calculation of index.
Region-wise pellet offers and deals :
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