SteelMint: PELLEX hits a new high on limited offers and iron ore price hike

SteelMint's bi-weekly domestic pellet index "PELLEX " has moved up sharply by INR 1,300/t to INR 16,400/t DAP Raipur in the recent deals. Three deals with total quantity of 23,000 t pellet were reported in this publishing window at INR 15,550-16,500/t DAP, Raipur.

Pellet offers move up - Raipur (Central India) based pellet manufacturers have increased its offers sharply by around INR 1,500/t ($20) yesterday. The current offer for Fe 62.5/63% pellet stands at INR 16,000-16,500/t exw Raipur. Two major pellet makers are not offering in the domestic market as they are booked for exports. At the same time, they kept exploring the export market on better realizations.

Raigarh based pellet makers have also increased offers to INR 1,200/t exw owing to limited offers in the market. Jharsuguda based pellet maker is likely to undergo maintenance shutdown and hence was not seen actively offering material in the domestic market.

Key highlights supporting pellet price hike -

Odisha's Essel Mining has increased INR 1,600/t further in the lump and INR 1,700/t fines price today. Also, Odisha's state-owned miner- Odisha Mining Corporation (OMC) had scheduled an iron ore e-auction yesterday for 1.37 mn t iron ore fines. Bids went up by upto INR 2,750/t (over 50%) against the set base price.

NMDC price revision is round the corner and market sources expect a price hike to be announced shortly.

Pellet sponge (P-DRI) prices in Raipur have increased by around INR 1,900/t w-o-w to INR 31,300/t exw today. On a daily basis also prices have increased sharply by INR 1,300/t.

Indian pellet market overview-:

India pellet prices have increased sharply around INR 100-1,500/t across the markets. Durgapur based pellet makers have raised offers by around INR 1,400/t post OMC's auction yesterday for lumps.

Western India-based - Jindal SAW Ltd has increased its pellet offer by INR 500/t against the previous offer floated in end-Apr'21. The current offer for Fe 63% grade pellets stands at INR 16,200/t DAP Kandla. The offers have increased against its last offer of INR 15,700/t.

Rationale - PELLEX has been derived using data points: i.e., trades, offers and bid. You can download the detailed methodology by clicking on this link Click here

• Three deals were reported in this publishing window and all were considered in the index calculation and kept the 50% weightage.
  
  
• Four firm offers were reported and two were offered from Raipur and the rest from outside Raipur. All were taken for price calculation and given a weightage of 50%.
  
  

Region-wise pellet offers and deals: