SteelMint: PELLEX rises INR 350/t on buoyant export outlook, rising raw material prices
SteelMint’s bi-weekly domestic pellet (Fe 63%) index, PELLEX, stands at INR 12,150/tonne (t) DAP Raipur on 28 Jan’22, up INR 350/t against the last as...
SteelMint's bi-weekly domestic pellet (Fe 63%) index, PELLEX, stands at INR 12,150/tonne (t) DAP Raipur on 28 Jan'22, up INR 350/t against the last assessment on 25 Jan. Around 23,000 t of deals were reported at INR 12,150/t DAP Raipur in the current publishing window.
Rationale:
- PELLEX has been derived using data points: i.e. trades, offers and bids. You can download the detailed methodology by clicking on this link Click here.
- Three deals were reported and considered in this publishing window as T1 trades for calculation of the index; accorded 50% weightage.
- Ten (10) firm offers, bids and indicative prices were reported. Six (06) were taken for price calculation and given 50% weightage.
- SteelMint received four (04) bids and only one was considered for calculation of the index.
Godawari Power and Ispat Ltd. (GPIL) increased domestic pellet offers by INR 300/t ($4/t) to INR 12,300/t exw ($164/t) from INR 12,000/t ($160/t). Other producers in Raipur, Central India also hiked offers to INR 12,000/t exw.
Price indications in Jharsuguda, Odisha were at 11,500/t exw on 28 Jan. Recovery in export sentiments and rising coal and sponge iron prices pushed pellet offers higher.
However, there is disparity in bids and offers as buyers are reluctant to take buying decisions amid uncertainty in market prices, pending deliveries and decent bookings of DR-CLO from NMDC.
Portside prices of South African coal have risen further by INR 1,200/t w-o-w to INR 15,000/t for vessels arriving till 9 Feb at Gangavaram Port. The rise is due to persistently low stock levels at major ports that compelled sponge iron manufacturers to make advance bookings.
Pellet-based DRI (P-DRI, FeM 80%) prices in Raipur rose w-o-w by INR 1,500/t to INR 34,500/t compared to offers prevailing last week. However, on a daily basis, prices inched down INR 200/t.
Indian pellet market overview: Domestic pellet prices increased across regions except in Kandla and Durgapur.
Pellet prices in Odisha's Barbil increased this week. The current assessment for Fe 63% pellet stands at INR 11,100/t loaded on to wagon, up INR 850/t against 21 Jan.
Region-wise pellet offers and deals:
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