SteelMint: PELLEX stable on limited trades

SteelMint's bi-weekly domestic pellet index "PELLEX " remained stable at INR 12,100/t, DAP Raipur. A small deal of 2,000 t pellet was concluded by a Raipur based player at 12,050/t (DAP Raipur) in this publishing window.

As per the SteelMint analysis, domestic pellet trades in Raipur contiues to remain less active as two major pellet makers from Raipur have not been offering as they are booked for export and other dispatch commitments.

Towards end of last week, National Mineral Development Corporation (NMDC) has announced price hike in iron ore up to 5% from its Chhattisgarh based mines. The miner has increased the price for Baila fines by INR 100/t, Baila lump by INR 250/t and DR-CLO by INR 290/t.

Despite the price hike by NMDC, buyers are still preferring lump over pellets owing to cost effectiveness. Currently, both the buyers and sellers are not in rush to conclude pellet deals.

Pellet sponge (P-DRI) prices in Raipur have remained stable today at INR 27,200/t as against the last week. On a daily basis, prices have moved down marginally around INR 100/t.

Indian pellet market overview-:

An eastern India based integrated steel mill has booked nearly 150,000 t pellets from Odisha-based plants recently. The deal has been concluded at around INR 11,500-11,700/t (loaded to wagons, Barbil), SteelMint learned from sources. Tighter availability of high-grade iron ore lumps in Odisha's merchant market is a reason behind the resumption in domestic pellet trades.

However, in other domestic markets like Bellary and Jharsuguda, offer have come down by around INR 250-350/t so far this week.

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

• One small deal has been concluded in this publishing window and considered in the index calculation with 50% weightage.
  
  
• Total five firm offers were reported this week out of that two from Raipur and the rest three from outside Raipur. All were taken for price calculation and given a weightage of 50%.
  
  

Region-wise pellet deals and offers: