Rationale: Indian Pellet index stable on limited trade activities

SteelMint's bi-weekly domestic pellet index "PELLEX" was unchanged on Friday at INR 5,900/t DAP Raipur. This price has been derived from using five data points: trades, offers, bids, substitute parity, and export realizations.You can download the detailed methodology by clicking on this link, Click here

1. One transaction of 15,000t was reported at INR 5,800/t (Ex-works) in the publication window. This has been normalized to INR 5,950/t (DAP Raipur). This transaction was given 57% weightage in the index.

2. Eight offers were considered for calculation in this window with an average price of INR 6,056/t (DAP Raipur) and given a weight of 14.3%.

3. No firm bids were recorded in the publishing window as buyers waited for NMDC to review lump and fines prices.

4. Steelmint calculated the price at which Raipur pellet can displace NMDC lump in the furnace burden (substitute parity) on a DAP Raipur basis at INR 5,300/t and given a weight of 14.3%.

5. The export realization was calculated by Steelmint at INR 6,100/t DAP Raipur based on a FOB east coast assessment of $100/t on 23/06/2020 and was given a weightage of 14.3%.

Recent trades reported in Indian Pellet market