SteelMint: PELLEX up by INR 100/t in recent deals

SteelMint's bi-weekly domestic pellet index "PELLEX" increased by around INR 100/t today (13th Oct'20) to INR 8,550/t, DAP Raipur in recent deals. Deals for 21,000 t pellets have been concluded by Raipur based pellet makers in this publishing window.

According to market sources, one of the pellet makers in Raipur has taken maintenance shut down towards the end of last week and another major pellet maker is likely to go on maintenance shutdown till the first week of Nov'20.

Pellet sponge (P-DRI) prices have increased marginally by around INR 100/t w-o-w to INR 19,600/t exw, Raipur against INR 19,500/t a week ago. However, on a daily basis sponge prices have remained stable.

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.

• Deals for 21,000 t pellets have been concluded by Raipur based pellet makers in this publishing window at INR 8,550/t (DAP Raipur). The transaction was taken into consideration for price calculation and given weightage given 80%.
  
  
• Two firm offers were reported this week at INR 8,550/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 20%.
  
  
• No firm bid has been reported 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 7,750/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: