SteelMint: PELLEX increases marginally in recent deals

SteelMint’s bi-weekly domestic pellet index ” PELLEX ” has increased marginally by INR 50/t to INR 11,600/t, DAP Raipur in a recent trades. Two pellet deals were recorded by SteelMint in this publishing window having a total quantity of 8,000t. Out of the two, one was concluded by a Raipur based pellet maker and the other was from a near by city.

Raipur based pellet makers have continued to keep offers stable at INR 11,650-12,150/t (DAP, Raipur). They may revise offers amid hike in sponge offers and price hike by other nearby markets, indicated by few sources.

Jharsuguda based pellet maker has increased offer by INR 200/t today to INR 10,800/t exw. Earlier this week, one deal was also done for 5,000 t at INR 10,600/t (ex-plant). Raigarh based pellet makers have increased its offer this week to INR 11,000-11,400/t exw, one deal also concluded for around 7,000 t at INR 10,750/t exw yesterday.

Pellet sponge (P-DRI) prices in Raipur have increased sharply on a weekly basis by INR 2,400/t to INR 25,900/t exw. However, on a daily basis prices have increased by around INR 500/t.

Rationale – PELLEX has been derived using data points: i.e., trades, offers and bid. You can download the detailed methodology by clicking on this link Click here.

• Two deals have been concluded in the Raipur domestic market for 8,000 t, out of that one deal was concluded by an outside Raipur based pellet maker for 5,000 t (Fe 63%) at INR 11,550/t (DAP,Raipur).
• Another Raipur pellet maker concluded around 3,000 t pellet (Fe 62.5%) at INR 10,950-11,100/t (DAP,Raipur) in this publishing window. Therefore, it was considered for price calculation after normalization with grade. Both the deals have given a weightage of 66.7%.
• Four firm offers from Raipur players were reported this week and three offers were taken for price calculation at INR 11,550-11,650/t (DAP, Raipur) and the rest four from outside Raipur at INR 11,500-11,900/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: