SteelMint: PELLEX remains stable in a recent deal

SteelMint’s bi-weekly domestic pellet index ” PELLEX ” has remained stable at INR 11,550/t, DAP Raipur in a recent trade. A pellet deal was concluded yesterday from a Raipur based pellet maker for a quantity of 10,000 t. Raipur based pellet makers have continued to keep offers stable at INR 11,650-12,150/t (DAP, Raipur) amid bookings for exports and recent rebound in sponge offers.

Jharsuguda based pellet maker kept the offer stable this week however the buying interest is lower by INR 100-200/t than the current offer. One of the Raigarh based pellet makers have increased its offer this week to INR 11,000/t exw, however offer from other stands stable at INR 10,750/t exw.

SteelMint has learned from the sources that Central India sponge makers are not interested to buy pellets at the current offers. Either they are preferring DR-CLO from NMDC or some of them have stocks from the previous pellet bookings.

Odisha based-Serajuddin & Co. has also resumed iron ore offers from its Balda iron ore block after a gap of over two months. And expected that it may increase availability of iron ore in the merchant market. The current offer price for Fe 63% fines is heard at around INR 5,500/t ex-mines and 5-18 mm cr at INR 8,000/t ex-mines (including Royalty, DMF & NMET). Miner has an EC limit of 15.15 mn t pa.

Pellet sponge (P-DRI) prices in Raipur have increased on a weekly basis by INR 1,200/t to INR 24,400/t exw. However, on a daily basis prices have increased by around INR 200/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.

• Single deal has been concluded in the Raipur domestic market for 10,000 t pellet (Fe 62.5%) at INR 10,950/t (DAP,Raipur) in this publishing window. Therefore, it was considered for price calculation after normalization with grade hence given a weightage of 66.7%.
• Four firm offers from Raipur players were reported this week and all offers were taken for price calculation at INR 11,650-12,150/t (DAP, Raipur) and the rest four from outside Raipur at INR 11,300-11,550/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: