SteelMint’s bi-weekly domestic pellet index ” PELLEX ” inched down further today by INR 50/t to INR 12,200/t DAP Raipur. No pellet deal has been reported in this publishing window on steep decline in sponge prices, previous inventories and preference to NMDC DR CLO over pellets. Deals of just 10,000t have been recorded under PELLEX by SteelMint so far in Jan’21 (till 22nd Jan) which is the lowest volumes recorded post lockdown.
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 report to SteelMint, buying interest is around INR 300-400/t below the prevailing offers in Raipur. A Raigarh based pellet maker also lowered offer further this week to INR 11,400/t exw.
Pellet sponge (P-DRI) prices in Raipur have decreased very significantly by around INR 1,500-1,600/t w-o-w to INR 24,000/t ex-plant this week.
However, as per the market sources pellet makers in Raipur are mostly exploring export possibilities on limited domestic inquiries and higher realizations in export.
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 concluded in this publishing window therefore it was not considered for price calculation and weightage given 0%.
- Four firm offers from Raipur players were reported this week and only three offers were taken for price calculation at INR 12,450/t (DAP, Raipur) and the rest three from outside Raipur at INR 12,050-12,250/t (DAP, Raipur) and given a weightage of 50%.
- One firm bid was reported in this publishing window therefore considered for price calculation and given 50% weightage in the index.
Calculation of Index:
Source-: SteelMint
Region-wise pellet deals and offers:
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