SteelMint’s bi-weekly domestic pellet index, PELLEX recorded trade volumes of over 100,000 t in Dec’20 slipping from around 150,000 t in Nov’20 and over 240,000 t in Oct’20 when the index had reached the pinnacle since its launch in Sept’19.
Total monthly trade volumes are calculated on the basis of bookings by Raipur-based pellet producers to both state-based buyers and those outside the state. Buyers from the state booking lots from manufacturers outside the state are also taken into account.
In case of Dec’20, SteelMint has learned that a 50,000 t parcel was bought by a major Gujarat-based integrated steel producer from a manufacturer in Raipur – almost 50% of the total monthly trade volume.
After record bookings in Oct’20 and Nov’20 trade volumes shrank in Dec’20 owing to preference for NMDC iron ore. SteelMint understands that Raipur-based sponge iron producers had stocked pellets in advance in the two months preceding Dec’20 as NMDC iron ore lumps prices were still lower compared to pellet prices.
According to SteelMint data, the Central PSU miner supplied around 320,000 t of iron ore to Chhattisgarh-based steel units in Dec’20 – up 6% compared to Nov’20. Total supply from NMDC’s mines in Chhattisgarh surged 4% to 1.67 mn t in Dec’20.
As assessed on 01 Jan’21, PELLEX stands at INR 12,200/t (DAP Raipur). Raipur-based pellet makers have kept their offers stable at around INR 12,150-12,450/t (DAP, Raipur) while the market waits for NMDC’s price revision in Jan’21. The state-owned miner raised prices of iron ore twice in Dec’20.
As per SteelMint data, PELLEX shows a steady rise from under INR 9,000/t in Oct’20 to over INR 12,000/t in Jan’21.
What is PELLEX?
SteelMint’s domestic pellet price index -PELLEX is a bi-weekly price assessment for Fe 63% grade (+/- 0.5%) publishing on every Tuesday and Friday with the delivery terms of DAP (Delivered at place), Raipur basis.
You can download the detailed methodology by clicking on this link Click here.
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