SteelMint’s bi-weekly domestic pellet index ” PELLEX ” inched down today by INR 100/t to INR 12,100/t DAP Raipur. One pellet deal has been reported in this publishing window after remaining trade silent since last couple of weeks.
Raipur based pellet makers are holding their offers stable at around INR 12,450-12,750/t (DAP, Raipur). However, as per the market participants buying interest is still below the prevailing offers in Raipur. Raigarh based pellet maker has kept the offers stable at INR 11,400/t exw.
Pellet sponge (P-DRI) prices in Raipur have decreased further w-o-w by around INR 300/t to INR 24,100/t ex-plant this week.
As per the market sources report to SteelMint, inquiries from the buyers have come down significantly perhaps on improved availability of iron ore in the market. As per them prices may get corrected in the next few days as the sponge falling significantly.
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
- One deal has been concluded by Raipur major pellet maker for Fe 62.5% pellet for 6,000 t for Raipur and outside Raipur at INR 11,500/t (Ex-plant) in this publishing window therefore it was considered for price calculation and weightage given 66.7%.
- Four firm offers from Raipur players were reported this week and only three offers were taken for price calculation at INR 12,050-12,450/t (DAP, Raipur) and the rest three from outside Raipur at INR 12,000-12,250/t (DAP, Raipur) and given a weightage of 33.3%.
- No firm bid was reported in this publishing window therefore not considered for price calculation and given 0% weightage in the index.
Calculation of Index:
Source-: SteelMint
Region-wise pellet deals and offers:
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