SteelMint: PELLEX remains stable, buyers await NMDC price revision

SteelMint's bi-weekly domestic pellet index " PELLEX " remains stable at INR 12,100/t DAP Raipur. No pellet deal has been reported in this publishing window. But as per the market participant offers may fall soon amid absence of trades and decline in sponge prices. Market participants are awaiting NMDC's iron ore price announcement for Feb'21.

Raipur based pellet makers are holding their offers stable at around INR 12,450-12,750/t However, as per the market participants buying interest is much below the prevailing offers. Raipur based another pellet maker is offering pellet (Fe 62.5%) at 11,650/t (DAP, Raipur).

Buyers indicated pellet offers from Odisha at INR 11,650/t (DAP, Raipur). However, as per the sources buying interest stands at INR 300-400/t lower than the prevailing offers.

Pellet sponge (P-DRI) prices in Raipur have increased on a daily basis by INR 200-300/t to INR 23,200-300/t. However, on a weekly basis prices decreased by around INR 900/t against last week at INR 24,100/t exw.

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.

• No deal has been concluded by Raipur pellet maker in this publishing window therefore it was not considered for price calculation and weightage given 0%.
  
  
• Four firm offers from Raipur players were reported this week and only three offers were taken for price calculation at INR 12,050-12,450/t (DAP, Raipur) and the rest two from outside Raipur at INR 11,650-12,050/t (DAP, Raipur) and given a weightage of 100%.
  
  
• One firm bid was reported in this publishing window but not considered for price calculation and given 0% weightage in the index.
  
  

Calculation of Index:

Source-: SteelMint

Region-wise pellet offers: