SteelMint PELLEX down marginally by INR 50/t in absence of trades
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SteelMint's bi-weekly domestic pellet index "PELLEX" has decreased marginally by INR 50/t to INR 11,550/t DAP Raipur today (27th Nov'20). No confirmed trade was reported for Raipur market in this publishing window .
Pellet makers in Raipur have kept the offers unchanged at INR 11,500/t (ex-plant).
However, offers from Jharsuguda and Raigarh have corrected marginally by INR 100-200/t recently. High-grade iron ore availability in Odisha is still a major concern for all steel makers. In today's SAIL iron ore fines (Fe 62.5%) e-auction from Bolani mines received an overwhelming response and bid price has increased by INR 1,140-1,150/t against base price at INR 4,400/t.
Pellet sponge (P-DRI) prices decreased by around INR 900/t w-o-w to INR 24,500/t exw, Raipur. On a daily basis, sponge price assessment has increased by INR 200/t.
Rationale - 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.
- No pellet deal has been concluded in this publishing window therefore not considered for price calculation and weightage given 0%.
- Five firm offers were reported this week and only four offers were taken for price calculation at INR 11,650/t (DAP, Raipur) and the rest four from outside Raipur at INR 11,150-11,600/t (DAP, Raipur) and given a weightage of 100%.
- No firm bids reported and not considered in price calculation in this publishing window, and given a weightage of 0%.
- 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 9,200/t and given a weightage of 0%.
- 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:
