SteelMint’s bi-weekly domestic pellet index “PELLEX ” has remained stable at INR 12,150/t, DAP Raipur. Raipur based major pellet makers are not offering in the domestic owing to previous export bookings. Domestic demand for pellets remained limited on limited inquiries due to decline in sponge prices seen since closing of last week.
Perhaps iron ore usage has been increased by the sponge makers resulting in less demand for pellets. As per the market sources, buyers are also not very desperate to buy pellet as they have started looking for substitute (like lumps and DRCLO usage) other than pellets. Also, NMDC has announced a roll over in its iron ore prices for Mar’21 deliveries.
However, as per the market sources, one deal for pellet was concluded for 5,000-6,000 t at INR 11,900/t (ex-plant) for the grade of Fe 62.5% towards the end of last week.
A few pellet makers from Jharsuguda & Raigarh are not offering in the market, as they have kept their offer closed. Most of them either being booked for the month or have export commitments ahead.
Pellet sponge (P-DRI) prices in Raipur have rebounded today to INR 27,100/t as against INR 27,200/t exw last week. On a daily basis prices have increased by around INR 100/t. Due to lack of pellet usage, pellet sponge availability is also one of the factors for the support of P-DRI prices.
Indian pellet market overview-:
Pellet makers in Odisha and West Bengal have continued to keep their offers stable despite decline in sponge prices on the back of export bookings. However with sharp decline in Chinese iron & steel futures today, market sentiments turned bearish. The benchmark iron ore futures for May delivery in Dalian Commodity Exchange today fell sharply by RMB 112/t ($17/t) to close at RMB 1,031.5/t ($158/t). Iron ore futures Apr contract in Singapore Exchange dropped by $7.6 to $165/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
- One deal has been concluded in this publishing window therefore given a weightage of 50%.
- Total three firm offers from were reported this week and one from Raipur and the rest two from outside Raipur. All were taken for price calculation and given a weightage of 50%.
Region-wise pellet deals and offers:
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