PELLEX Increases Sharply in Recent Deals

PELLEX increased further by INR 450/MT to INR 7,550/wmt (DAP Raipur). Pellet deals for around 20,000 MT reported to Raipur sponge makers at INR 7,400/MT(Ex-plant); normalizing for freight to Raipur at INR 7,550/MT (DAP, Raipur).

Raipur based pellet makers increased the offer to INR 7,400/MT( Ex-plant). Raigarh based pellet makers offer at INR7,000- 7,200/MT (EXW).

SteelMint P-DRI Assessment (Jan 07, 2020) increased by INR 900/MT W-o-W to INR 20,100/MT as against INR 19,200/MT (Ex-Raipur) a week before.

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 6,620/MT (DAP Raipur).

In Central India the market is liquid, therefore substitute Parity factor has been ignored in the computation of PELLEX.

Other Regions Trade-:

-- Bellary based pellet makers sold small quantities around 3,000MT pellets for Fe 63% grade at INR 7,100/MT recently. Another major pellet maker from Bellary sold around 20,000 MT pellets for both the grades (Fe 63 and 65%) at INR 7,500-8,000/MT(EXW).

Click here to see SteelMint Pricing Methodology and Rationale documents.

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