SteelMint’s bi-weekly domestic pellet index “PELLEX ” has increased by INR 400/t to INR 15,800/t DAP Raipur. Single deal was done for Fe 62.5% pellet in Raipur for 5,000 t at INR 15,150/t DAP, Raipur in this publishing window.
Raipur pellet manufacturers have held offers firm. The current offer for Fe 63% pellet stands at INR 15,800-16,000/t exw Raipur. However, landed offers from other states like Jharsuguda, West Bengal and Bellary have witnessed an increase after pellet makers booked decent quantities last week.
Pellet offers from Jharsuguda have increased by around INR 300-400/t and that from Durgapur by around INR 1,000/t vis-a-vis 28 May’21.
Buyers await NMDC price revision- NMDC price revision is due for the month of June and expected to be released soon. NMDC’s iron ore rake movements to Chhattisgarh-based mines were recorded at 57 rakes in May’21 compared to 53 rakes a month ago, as per the data maintained with SteelMint.
State-owned miner Odisha Mining Corporation (OMC) has scheduled its next iron ore e-auction for 2 June’21 for a total of 619,000 t of iron ore lump.
Buyers are still reluctant to procure pellet at the current prevailing offer in the market. Therefore, they are holding the purchase and adopting a ‘wait and watch’ approach.
Sponge makers in Raipur also head to be stopped giving resale offers which was earlier INR 14,500/t as per the sources.
Pellet sponge (P-DRI) prices in Raipur have increased around INR 1,300/t w-o-w to INR 30,000/t exw today. However, on a daily basis prices have moved up INR 500/t.
Indian pellet market overview-: Indian pellet prices in all the key markets have recorded a significant price hike of around INR 200-1,200/t this week tracking hike in sponge prices.
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
- Single deal was reported in this publishing window and hence considered for index calculation and given 50% weightage.
- Six firm offers and indicative price were reported, four were from Raipur and the rest from outside Raipur. All were taken for price calculation and given a weightage of 50%.
- SteelMint has also no bids in this publishing window therefore not taken into consideration for index calculation today. No firm resale offers were also heard in the market.
Region-wise pellet offers and deals:
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