SteelMint pellet index up by INR 100/t in recent trades
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SteelMint's bi-weekly domestic pellet index "PELLEX" increased by INR 100/t on Friday (04th Sept'20) to INR 8,700/t DAP in recent trades. Small deals accumulated around 14,000 t was reported by a Raipur based pellet maker Raipur in this publishing window. Pellet sponge offers have improved today after registering an increase of around INR 300/t to INR 20,200/t exw against INR 19,900/t yesterday.
Raipur pellet makers increased offers further by INR 200/t to INR 9,150/t (DAP, Raipur) this week. Pellet makers in and outside Raipur continue to be on maintenance shut down and others are not offering owing to lack of material availability. Therefore, participants reported an acute shortage of pellet at the moment.
PELLEX has been derived using five data points: i.e trades, offers, bids, substitute parity, and export realizations. You can download the detailed methodology by clicking on this link Click here
Assigning weightage to data points:
- Number of small deals concluded as per requirement basis in local Raipur maket by a pellet maker cumulatively around 14,000 t at INR 8,950/t (DAP, Raipur) in this publishing window. They were considered for price calculation and given a weightage of 57.1%.
- Two firm offers were reported this week at INR 9,150/t (DAP, Raipur) and the rest two from outside Raipur at INR 9,050- 9,250/t (DAP, Raipur) which have been given a weightage of 14.3%.
- Three firm bids were reported but only one considered for the price calculation in this publishing window at INR 8,650/t (DAP, Raipur) and given a weightage of 14.3%.
- SteelMint calculated the price at which Raipur pellet can displace NMDC lump in the sponge rotary kiln feed (substitute parity) on a DAP Raipur basis at INR 7,300/t and given a weightage of 14.3%.
- The export realization factor has not been considered as pellet makers are less active in exports owing to an increased domestic realization.
Calculation of Index:
Source-: SteelMint
Region-wise pellet deals and offers:
