SteelMint: PELLEX up by INR 100/t, trades muted
...
SteelMint's bi-weekly domestic pellet index "PELLEX" has increased further by INR 100/t to INR 12,050/t DAP Raipur. No deal has been reported for the Raipur market in this publishing window.
Other major pellet makers in Raipur like Bajrang Power & Neco have increased offers by INR 200/t today to INR 12,000/t (ex-plant). Pellet offers from Jharsuguda are at 11,850-11,950/t (DAP, Raipur).
Key pellet buyers in the Raipur continue to prefer NMDC iron ore over pellets on higher margins. Bids for pellets remained lower by INR 500/t than current offers, SteelMint learned.
Pellet sponge (P-DRI) prices have increased by around INR 800/t w-o-w to INR 25,600/t exw, Raipur. However, on a daily basis, prices have increased by INR 100/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 it was not considered for price calculation and weightage given 0%.
- Three firm offers were reported this week and all offers were taken for price calculation at INR 12,150/t (DAP, Raipur) and the rest four from outside Raipur at INR 11,850-12,100/t (DAP, Raipur) and given a weightage of 100%.
- Two firm bids were reported in this publishing window but were not considered for price calculation as they were not falling in the range of subsitute price comparison and hence given weightage 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 10,700/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 better realization in the domestic market.
Calculation of Index:
Source-: SteelMintRegion-wise pellet deals and offers:
