BigMint is a Market Intelligence and Price Reporting firm that caters to the data and analytics requirements of businesses in the commodities sector. It publishes real time prices and information, which is impartial, independent and reliable, sourced from all industry interfaces – sellers, buyers, agents and traders. This data is filtered and passed through very stringent, calculative assessments before final prices are derived, thereby giving our clients accurate pricing.

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SteelMint Pellet index records highest trade volumes in Oct

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Pellets

BigMint Bureau

919 Reads

6 Nov 2020, 10:43 IST

SteelMint Pellet index records highest trade volumes in Oct

SteelMint's bi-weekly pellet index for the Raipur market, PELLEX, recorded highest ever trade volumes of over 200,000 t in Oct'20. This happens to be the highest on record since launch of the index in Sept'19.

As per SteelMint data, sales by major players in the Raipur market include Godawari Power & Ispat (GPIL) with volumes crossing over 0.1 mn t, while Bajrang Power & Ispat and Sarda recorded 80,000 t and 45,000 t of sales respectively during the month, among the major sellers.

Shortage of high-grade iron ore lumps is a major driver of pellet sales. Sharp slide in production from Odisha, due to disruption in operationalization of new mines since the minerals auctions earlier this year, contributes to shortage. Also, Chhattisgarh iron ore production impacted due to adverse weather conditions and concerns relating to spread of the virus.

However, domestic realizations are higher by around INR 1,350/t to INR 9,350/t compared to exports, which explains shipments falling with soaring demand in the domestic market.

What is Pellex - SteelMint Pellet Index ("PELLEX") is a bi-weekly price index and is representation of the domestic pellet prices for pellets delivered at buyers' site in Raipur (DAP Raipur). It is published every Tuesday and Friday at 18:30 IST.

How is it derived ? Our methodology details the processes and standards we adhere to in collecting data, classifying data, normalizing and rationalizing the data to arrive at final assessment values (PELLEX). The indices aim to be reflective of the price levels seen during the data collection time period or window and to be a reliable indicator of value of the pellets market.

Methodology - Our Index assessment methodology divides and classifies the market data into following heads: concluded domestic transactions in Raipur and export transactions from Raipur, firm Offers to Raipur based DRI makers from Chhattisgarh based pellet plants, firm bids by Raipur based DRI makers, export realization in INR (Delivered in Raipur, Substitute Factor - Reflects price which the buyers (DRI manufacturer) are willing to pay for pellet in comparison with Iron Ore from NMDC and Orissa Iron Ore Movement from NMDC and Orissa-based Mines. However, the weightage of the heads are subject to changing market trends.