PELLEX Stable at INR 6,150/wmt (DAP Raipur)

PELLEX stable at INR 6,150/wmt (DAP Raipur) amid silent market. No deals were reported in this publication window.

Raipur based plants' have kept their offers unchanged at INR 6,200/MT( Ex-plant); normalizing for freight to Raipur at INR 6,350/MT (DAP Raipur). Raigarh based pellet maker offering pellet at INR 6,000/MT(Ex-plant), normalizing for freight to Raipur at INR 6,650/MT (DAP Raipur).

No bids were reported. SteelMint P-DRI Assessment (Sept 17, 2019) at INR 16,700/MT (Ex-Raipur) against INR 16,400/MT (Ex-Raipur) a week before

One export deal was reported by East-India pellet maker to China at around USD 107/DMT CFR China for Fe 64% grade (Al 3%). Exports indications for standard grade pellet (Fe 64%, Al 3%) stands at USD 92-93/MT, FoB India. Since the Export market is illiquid in Central India, export realization factor has been ignored in the computation of PELLEX.

Since iron ore movement from NMDC and Odisha has slowed amid monsoons, Substitute parity factor has been ignored in the computation of PELLEX.

Why PELLEX? India has installed pellet capaci1ty of 85 MnT pa and an annual production of around 65-66 MnT. 5 major states - Odisha (28.9 MnT), Karnataka (19.5 MnT), Chhattisgarh (9.6 MnT), Jharkhand (8.4 MnT) and Andhra Pradesh (8 MnT) - covers around 85-90% of the capacity. Based on the above we have chosen Raipur as our index base as this market seems more active from a domestic merchant trading perspective along with exports. Also, Chhattisgarh has a good base for sponge iron makers (DRI) who procure a decent amount of pellets.

These factors have led SteelMint to launch this index of PELLET on DAP Raipur basis.
The proposed specifications, along with delivery terms were devised following consultation with market participants. They are as follows:
1. Fe Content - Fe 63-64%
2. Combined Silica & Alumina - 7%
3. Trade Size - 2,500-10,000 MT
4. Payment terms - Advance

SteelMint will continue to monitor changes in the pellet markets and will adjust its methodology in accordance with the market participants.

To provide feedback/suggestions, please contact info@steelmint.com

Click here to see SteelMint Pricing Methodology and Rationale documents.