SteelMint: PELLEX increases sharply by INR 750/t in recent deals
SteelMint's bi-weekly domestic pellet index "PELLEX " has moved up sharply by INR 750/t to INR 12,800/t DAP Raipur in a recent deals and hike in offers. Confirmed deals of around 30,000 t pellet (Fe 62.5/63%) was reported by a Raipur based pellet makers at 12,350-12,650/t (DAP Raipur) in this publishing window.
Domestic pellet offers have increased in Central India amid hike in lumps offer from Odisha based merchant miners as well as OMC base price hikes in today's auction.Odisha Mining Corp (OMC) base price has been increased further by INR 1,300/t over the base price released on 26th Mar.
Earlier towards the end of last week, Odisha's Essel Mining had increased iron ore lump offers by INR 500/t. Offer for lump (5-18 mm, Fe 62%) stands at INR 8,600/t (ex-mines, including Royalty, DMF & NMET). However, the miner has kept fines offer unchanged.
Other Raipur based sponge makers have continued to remain away from booking pellets as they have shifted their kiln feed to NMDC's DR CLO and Odisha based lumps. However, it seems that they are waiting for price revision by other Odisha merchant miners and NMDC.
Pellet sponge (P-DRI) price in Raipur has also increased sharply today by INR 800/t to INR 28,800/t against yesterday. On a weekly basis, prices have also moved up significantly around INR 1,800/t.
Indian pellet market overview-:
Pellet offers across the key producing regions have increased sharply by INR 350-800/t specially in eastern and Central India. However, Western India, pellet maker- Jindal SAW has decreased pellet offer by INR 200/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
- Three deals have been concluded in this publishing window and considered in the index calculation with 50% weightage.
- Total four firm offers were reported this week out of that two from Raipur and the rest two from outside Raipur. All were taken for price calculation and given a weightage of 50%.
Region-wise pellet deals and offers: