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SteelMint: PELLEX remains stable on limited trade

SteelMint’s bi-weekly domestic pellet index, PELLEX, remains stable at INR 14,700/t DAP Raipur after a sharp decline of INR 850/t on 20 Jul’21. A Raipur-bas...

Pellets
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23 Jul 2021, 19:40 IST
SteelMint: PELLEX remains stable on limited trade

SteelMint's bi-weekly domestic pellet index, PELLEX, remains stable at INR 14,700/t DAP Raipur after a sharp decline of INR 850/t on 20 Jul'21. A Raipur-based pellet maker sold a limited quantity in the domestic market within this publishing window.

Raipur-based pellet producer, Jayaswal Neco, has kept offers stable at around INR 14,600/t exw. One producer from Raipur continues to remain out of the market due to maintenance and is likely to resume operations by the end of next week. Other pellet makers are still out of market due to previous export commitments.

A Jharsuguda-based producer has also kept offers stable at INR 14,500/t exw. However, active bookings were reported at quoted offers by Raigarh- and Jharsuguda-based mills. Pellet offers from Raigarh stand at INR 14,600/t exw.

SteelMint's benchmark pellet sponge (P-DRI, FeM 80%) prices rose by INR 600/t w-o-w to INR 29,700/t exw Raipur on 23 Jul. However, on a daily basis, P-DRI prices decreased by around INR 100/t. Prices dropped slightly as bids edged lower today along with soft buying interest due to plunging ingot and billet prices.

Indian pellet market overview-: SteelMint's assessment for Bellary iron ore pellet (Fe 63%) stands at INR 13,000/t exw as against INR 12,800/t exw on 20 Jul'21. However, Durgapur pellet prices remained stable in a recent deal, as per SteelMint reports. Not much trading activity was recorded as P-DRI prices have declined by INR 200/t in the last two days.

Rationale:

PELLEX has been derived using data points: i.e., trades, offers and bids. You can download the detailed methodology by clicking on this link Click here.

  • Limited deal reported in this publishing window that was not considered as T1 for index calculation and given a 0% weightage.

  • Seven firm offers and indicative prices were reported. Two were from Raipur and the rest from outside the state capital. Three were taken for price calculation and given a weightage of 100%.

  • SteelMint received no bids today for the calculation of the index.

Region-wise pellet deals and offers:

 

23 Jul 2021, 19:40 IST

 

 

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