SteelMint’s bi-weekly domestic pellet index “PELLEX ” remained stable at INR 14,550/t DAP Raipur in a recent deal. Single deal of 5,000 t pellet has been reported in this publishing window from Odisha at INR 14,200/t DAP, Raipur.
Raipur based pellet makers have kept the offers stable at INR 14,500- 15,000/t exw for Fe 63/62.5% grade. As a couple of pellet makers in Raipur are actively booked for exports, thus there are less chances of sharp price correction in domestic market on demand-supply mismatch.
On the other side, NMDC is going to conduct two iron ore auctions for around 180,600 t from its Bacheli mines and 50,400 t from Kirandul mines, Chhattisgarh. Out of the offered quantity, 16,800t is DR-CLO and 163,800t is fines. Both the auctions are scheduled for 30 Apr ’21. Market participants are awaiting response of the auction to understand outlook on NMDC’s iron ore prices for May’21.
However, rising COVID cases followed by lock down in Raipur have started negatively impacting the plant operations and trades in the market. Pellet sponge (P-DRI) price in Raipur has decreased by around INR 1,650/t from last week’s closing to INR 29,250/t exw today. On a daily basis also, prices have moved down by around INR 150/t.
Indian pellet market overview-:
India pellet prices across the regions increased around INR 100-500/t in this publishing window on the back of higher pellet export prices and tighter iron ore availability.
However, western India-based – Jindal SAW Ltd has kept the offer stable. The current offer for Fe 63% grade pellets stands at INR 15,200/t DAP Kandla.
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 reported in this publishing window and considered in the index calculation and kept the weightage 50% weightage.
- Seven firm offers and bids were reported and out of those four offers from Raipur and three from outside Raipur. Six were taken for price calculation and given a weightage of 50%.
Region-wise pellet offers and deals:
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