SteelMint pellet index up marginally to INR 8,300/t

SteelMint's bi-weekly domestic pellet index "PELLEX" increased marginally by INR 50/t on Tuesday (18th Aug'20) at INR 8,300/t DAP, Raipur amid supply concerns for both pellet and iron ore.

Raipur pellet makers have kept offers stable. However, limited deals were reported at higher prices. Bulk pellet buyers are cautious before scale booking.

Pellet makers in areas around Raipur have resumed offers as these mills have completed their maintenance schedules.

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:

• One transaction of 2,000 t was reported today at INR 8,550/t (DAP, Raipur) by a Raipur based pellet maker. This transaction was given a 57.1% weightage in the index.
  
  
• Four firm offers were reported this week at INR 8,550 - 8,650/t (DAP, Raipur) and the rest three from outside Raipur at INR 8,650-8,750/t (DAP, Raipur) which have been given a weightage of 14.3%.
  
  
• Three firm bids were reported but only two of them have been considered for price calculation at INR 8,250-8,350/t (DAP, Raipur) in this publishing window 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 7,000/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 increase in domestic demand.
  
  

Calculation of Index:

Source-: SteelMint

Region-wise pellet deals and offers: