SteelMint’s bi-weekly domestic pellet index ” PELLEX ” remains stable at INR 11,550/t, DAP Raipur. Raipur based pellet makers continue to hold pellet offers stable at INR 11,650-12,150/t (DAP, Raipur) due to export bookings concluded recently. According to the SteelMint’s analysis, realizations in pellet exports is higher by INR 300-400/t vis-a-vis prevailing domestic offers.
On the other hand, central India’s sponge buyers are not interested to buy pellets at current offers. In the month of January, there were hardly any bulk pellet trades seen as buyers prefered to go for DR-CLO offered from NMDC. The miner has lowered prices by upto 12% m-o-m for Feb’21.
According to market sources report to SteelMint, a state owned miner cum steel unit is likely to have undertaken conversion contract deal with one of the central India based pellet makers wherein fines supplied from the miner would be converted to pellets by central India based units and supplied back to the steel maker.
Jharsuguda and Raigarh based pellet makers have increased their offers this week to INR 10,500-10-600/t and INR 10,750/t exw respectively. However, one of the major pellet maker from Raigarh was not offering.
Pellet sponge (P-DRI) prices in Raipur have increased on a weekly basis by INR 600/t to INR 23,500/t against last week. However, on a daily basis prices have decreased 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.
- No deal has been concluded in the domestic market in this publishing window. Therefore, it was not considered for price calculation and weightage given 0%.
- 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 three from outside Raipur at INR 11,250-11,750/t (DAP, Raipur) and given a weightage of 100%.
- One firm bid was reported in this publishing window but not considered for price calculation and given 0% weightage in the index.
Region-wise pellet deals and offers:
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