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SteelMint: PELLEX remains stable, trades remain subdued

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Pellets

BigMint Bureau

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23 Feb 2021, 19:23 IST

SteelMint: PELLEX remains stable, trades remain subdued

SteelMint's bi-weekly domestic pellet index -PELLEX stands stable at INR 11,600/t, DAP Raipur. No trade was heard to have concluded in this publishing window.

Raipur based pellet makers have continued to keep offers (Fe 63%) stable at INR 11,650-12,150/t (DAP, Raipur). Another Raipur based pellet maker is offering Fe 62.5% grade pellets at INR 11,000/t exw Raipur.

According to market sources report to SteelMint, central based pellet makers have concluded export deals last week and are hence not active in concluding deals in the domestic market. With sufficient export bookings placed, Raipur pellet offers are less likely to witness a steep downward correction, highlighted sources.

Jharsuguda based pellet maker has kept offers majorly stable at INR 10,700/t exw. Earlier this week, one deal was also done for 3,000 t at INR 10,700/t (ex-plant). A Raigarh based pellet maker has concluded one deal for around 4,000 t at INR 10,900/t exw yesterday and current offers are at INR 11,000/t exw.

Buyers seemed less interested to book pellets at current offer, as they continue to prefer NMDC ore. NMDC is going to conduct two iron ore auctions for around 651,000 t from its Bacheli mines and 50,400 t from Kirandul mines, Chhattisgarh. Both the auctions are scheduled for 25 Feb '21. Trade sources are awaiting the results of the auction to get a clearer market outlook.

Pellet sponge (P-DRI) prices in Raipur have increased sharply on a weekly basis by INR 1,000/t to INR 25,400/t exw. However, on a daily basis prices have decreased by around INR 300/t.

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.

Four firm offers from Raipur players were reported this week and three offers were taken for price calculation at INR 11,400-11,650/t (DAP, Raipur) and the rest three from outside Raipur at INR 11,400-11,750/t (DAP, Raipur) and given a weightage of 100%.
No firm bid was reported in this publishing window therefore not considered for price calculation and given 0% weightage in the index.
No trade was reported in this publishing window for Raipur based plant therefore not considered for price calculation and given 0% weightage in the index.

Calculation of Index:

Source-: SteelMint