India: PELLEX Up by INR 100/WMT Amid Thin Trades

PELLEX increased by INR 100/MT to INR 6,250/wmt (DAP Raipur) amid thin trade. Pellet deals for around 3,000 MT reported from Raipur market to Nagpur (Maharashtra) based sponge maker at INR 6,200/MT(Ex-plant); normalizing for freight to Raipur at INR 6,350/MT (DAP Raipur).

The majority of sponge manufacturers are using iron ore lumps. Chhattisgarh based steel plants increased sourcing from NMDC (C.G.) by 16% to 22 rakes (equivalent to 84,700 MT) till 11th Dec against 19 rakes (73,150 MT) for the same timeframe in Nov'19.

Pellet deals for around 5,000- 6,000 MT (slightly lower grade) reported from Durg to Raipur market at INR 6,000- 6,100/MT (DAP Raipur) a week before.

No Pellet export deal was heard in this publishing window. However, SteelMint Pellet export assessment for the regular grade (Fe 64% and 3% Al) stands at USD 104MT, FoB India.

Ex -Plant export realization for Raipur pellet maker up around INR 6,000/WMT.

Considering the landed cost of Lump and other factors like yield, conversion cost, etc for NMDC and Orissa; the substitute parity price for Pellet is INR 6,000/MT (DAP Raipur).

Deals from other regions-:

-- Bellary based pellet makers have sold around 13,000-14,000 MT pellets at INR 6,150-6,250/MT (EXW) recently.

Click here to see SteelMint Pricing Methodology and Rationale documents.

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