PELLEX up by INR 400/t, producers raise offer on active export bookings

SteelMint's bi-weekly domestic pellet index "PELLEX " has increased sharply by INR 400/t to INR 12,150/t, DAP Raipur owing to hike in offers by pellet makers. Raipur based pellet makers have increased their offers by around INR 900-1,000/t to 12,550-12,650/t (DAP, Raipur) yesterday at par with export realization.

Prices got inflated owing to decent exports booking concluded by the major pellet makers from Raipur in the last couple of weeks. Trade sources foresee availability of pellet may get disturbed in the month of Mar and April, as they have decent export bookings to be shipped.

As per SteelMint analysis, both buyers and sellers are not active currently in the domestic pellet market. Most of the buyers in Raipur either shifted their kiln feed to DR-CLO or about to change due to price competitiveness. Buyers are showing very limited interest for pellets currently.

Pellet sponge (P-DRI) prices in Raipur have increased sharply on a weekly basis to INR 27,400/t as against INR 26,800/t exw last week. On a daily basis prices have increased by around INR 300/t.

As per the sources, NMDC may soon announce iron ore prices for Mar deliveries.

Indian pellet market overview-:

Pellet makers in Barbil, Jamshedpur & Raipur have raised offers. In a recent deal concluded, an Odisha based pellet maker has booked around 45,000 t pellet to Odisha based steelmaker at INR 11,200-11,300/t (ex-plant).

Odisha's leading miner - Odisha Mining Corp (OMC) has scheduled its next iron ore e-auction on 10th Mar'21 for 1.44 mn t iron ore fines. Out of the total 590,000 t fines from Guali and Jilling-Langalota iron ore mines. OMC allotted two new mines Guali and Jilling-Langalota also put up for auction along with the other mines of OMC. It is to be expected that auctioning of iron ore from these mines may increase the availability of iron ore in the market and cool down the ore prices further.

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

• No deal has been in this publishing window therefore given a weightage of 0%.
  
  
• Three firm offers from Raipur were reported this week and only one was taken for price calculation at INR 12,150/t (DAP, Raipur) and the rest two from outside Raipur at INR 12,100-12,250/t (DAP, Raipur) and given a weightage of 100%.
  
  

Region-wise pellet deals and offers: