PELLEX Steady at INR 5,950/WMT in Recent Trades

PELLEX stable at INR 5,950/wmt (DAP Raipur) PELLEX stable at INR 5,950/wmt (DAP Raipur) in recent trades. Two deal for 4,000 MT and 5,000 MT reported in this publishing window from Raipur at INR 5,950/MT (DAP Raipur).

Raipur based pellet maker kept pellet offers stable at INR 6,000/MT( Ex-plant); normalizing for freight to Raipur at INR 6,150/MT (DAP Raipur). Four bids were reported at INR 5,650-5,950/MT as market activities are yet to pick up after holidays.

No export deals reported in this publishing window deals are yet to take place as Chinese mills have just resumed after national holidays. India pellet exporters are offering around USD 107-108/MT, CFR China. SteelMint Pellet Exports assessment stands for Fe 64% (3% Alumina) at around USD 93/MT, FoB India.

In Central India the export market is illiquid, therefore export realization factor has been ignored in the computation of PELLEX.

Why PELLEX? India has installed pellet capaci1ty of 85 MnT pa and an annual production of around 65-66 MnT. 5 major states - Odisha (28.9 MnT), Karnataka (19.5 MnT), Chhattisgarh (9.6 MnT), Jharkhand (8.4 MnT) and Andhra Pradesh (8 MnT) - covers around 85-90% of the capacity. Based on the above we have chosen Raipur as our index base as this market seems more active from a domestic merchant trading perspective along with exports. Also, Chhattisgarh has a good base for sponge iron makers (DRI) who procure a decent amount of pellets.

These factors have led SteelMint to launch this index of PELLET on DAP Raipur basis.

The proposed specifications, along with delivery terms were devised following consultation with market participants. They are as follows:
1. Fe Content - Fe 63-64%
2. Combined Silica & Alumina - 7%
3. Trade Size - 2,500-10,000 MT
4. Payment terms - Advance

SteelMint will continue to monitor changes in the pellet markets and will adjust its methodology in accordance with the market participants.

To provide feedback/suggestions, please contact info@steelmint.com 

Click here to see SteelMint Pricing Methodology and Rationale documents.