Dull domestic market and declining export prices lowers PELLEX further

PELLEX moved down marginally by INR 50/MT to INR 5,900/wmt (DAP Raipur) amid dull buying interest due to plunge in sponge prices. Also, another factor that has kept domestic offers under pressure is fall in pellet export prices in this publishing window.

However, no pellet deal has been concluded in the domestic market in this publishing window.

SteelMint P-DRI assessment ( June 19, 2020) moved down sharply by INR 900/t w-o-w to INR 14,800/t (ex-plant) as against the last assessment at 15,700/t (ex-plant). Sponge iron prices in Raipur are hovering at three-year low.

Pellets offer from Raipur and nearby location-:

-- Raipur based pellet makers kept offers stable at INR 6,000/t (ex-plant); normalizing for freight to Raipur at INR 6,150/t (DAP Raipur).

-- Raigarh based pellet makers offer remained stable at INR 5,600/t (ex-plant) in this window of Index.

-- Gujarat based pellet maker- Jindal SAW decreased pellet offers by INR 200/t to INR 8,200/t (ex-plant) this week.

-- SteelMint's domestic pellet price assessment for Jharsuguda and Durgapur have come down by INR 100/t.

Indian pellet export offer-:

-- A Central India based pellet maker has concluded around 50,000 t pellet export deal for Fe 64% grade pellets with 3% Al in mid of this week to China at around USD 111/t, CFR.

-- In another deal, a southern India based pellet maker- KIOCL has also concluded a pellet export deal (Fe 64% grade pellets less than 2% Al). The deal was reported to have concluded for the non-Chinese market most probably to the MENA region, as per the sources.

-- Ex -Plant export realization for pellet makers is down by INR 200/t to around INR 6,000/t this week.

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