SteelMint’s bi-weekly domestic pellet index “PELLEX” has increased by INR 500/t to INR 16,300/t, DAP Raipur, in recent deals. Two deals of 5,000t each for Fe 62.5% grade pellet were concluded at INR 15,650 and 16,150/t, DAP Raipur, in this publishing window.
A couple of Raipur-based pellet makers are not offering material in the merchant market owing to recently concluded export bookings. A market participant claims to have booked a 55,000 t parcel at $232/t, FoB, for Jul’21 shipment. Another deal reported by SteelMint earlier this week was for a low-Al pellet parcel at $260/t, CFR China.
Thus, with limited offers in the merchant market, another Raipur-based player was heard to have raised offers. The current offer for Fe 62.5% stands at INR 16,000/t, exw Raipur, up by 500/t. No firm offers were heard from Jharsuguda on 4 Jun.
Iron ore lump prices hit record high in OMC’s auction- State-owned Odisha Mining Corporation’s (OMC) e-auction for 619,000 t of iron ore lump was concluded at 42.8% higher over the set base price and the entire quantity on offer got booked. The state-owned miner had increased the quantity to be put under the hammer to 619,000t. With lump prices hitting a record high in this auction, a few sponge iron producers have turned active, even if slightly, in securing pellets.
However, other Chhattisgarh-based sponge manufacturers are waiting for NMDC’s anticipated price revision for Jun’21.
Pellet sponge (P-DRI) prices in Raipur today increased by INR 2,200/t on week to INR 31,200/t, exw. However, on a daily basis, prices moved up INR 200/t.
Indian pellet market overview-: Pellet prices across markets have recorded a significant hike of around INR 250-1,500/t this week on sharp hike in raw materials 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
- Two deals were reported in this publishing window and hence considered for index calculation and given 50% weightage.
- Five firm offers and indicative prices were reported. Three were from Raipur and the rest from outside the state capital. All the offers were taken for price calculation and given a weightage of 50%.
- SteelMint did not hear of any bids in this publishing window and therefore these were taken into consideration for index calculation today. No firm resale offers were heard in the market.
Region-wise pellet offers and deals:
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