Category Archives: Pellets

SteelMint pellet price as on July 27

SteelMint: PELLEX remains stable despite slow spot trading

SteelMint’s bi-weekly domestic pellet index, PELLEX, continues to remain stable at INR 14,700/t DAP Raipur on 27 Jul’21. A Raipur-based pellet maker sold a limited quantity of around 2,000t in the domestic market at INR 14,500/t exw Raipur within this publishing window.

Raipur-based pellet producer, Jayaswal Neco, has kept offers stable at around INR 14,600/t exw. However, one pellet maker from Raipur sold a small quantity of 2,000 t this week at INR 14,500/t exw. The pellet maker continues to be on maintenance and is likely to resume operations by the end of next week.

A Jharsuguda-based producer has increased offers by around INR 200/t to INR 14,600-14,800/t exw. However, active bookings were reported at quoted offers by Raigarh- and Jharsuguda-based mills. On the other hand, pellet offers from Raigarh stand at INR 14,800/t exw.

State-owned Odisha Mining Corporation (OMC) has scheduled an e-auction for iron ore lumps on 31 Jul’21. The auction is being conducted for 687,000 t of material. The base price has been increased by up to INR 2,860/t as against the price at the last e-auction on 2 Jun.

SteelMint’s benchmark pellet sponge (P-DRI, FeM 80%) prices rose by INR 300/t w-o-w to INR 29,300/t exw Raipur on 27 Jul. However, on a daily basis, P-DRI prices decreased by around INR 200/t. A majority of sponge makers have sufficient orders in hand and supply has also lessened. Hence, a major fall in prices can be safely ruled out.

Indian pellet market overview-: SteelMint’s assessment for Bellary iron ore pellet (Fe 63%) stands at INR 13,300/t exw, up by INR 300/t against the previous assessment on 23 Jul’21.

However, Durgapur pellet prices remained stable in a recent deal, as per SteelMint reports.

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 of 2,000 t reported in this publishing window and that was considered as T1 for index calculation and given a 50% weightage.
  • Eleven (11) firm offers and indicative prices were reported. Five were from Raipur and the rest from outside the state capital. Six were taken for price calculation and given a weightage of 50%.
  • SteelMint received no bids today for the calculation of the index.

Region-wise pellet deals and offers:
SteelMint Indian pellet deals as on July 27

 
India: Bellary pellet prices up in recent transaction

India: Bellary pellet prices up in recent transaction

SteelMint’s assessment for Bellary iron ore pellet (Fe 63%) stands at INR 13,300/t exw, up by INR 300/t against the previous assessment on 23 Jul’21.

  • A confirmed trade for about 10,000 t of pellets was concluded at around INR 13,300/t exw a couple of days back.
  • Current offers are assessed at INR 13,300-13,500/t exw. A few trader sources highlighted that a couple of producers are expected to undergo maintenance shutdown in the coming days.
  • SteelMint’s assessment for Bellary P-DRI decreased by INR 200/t today to INR 29,100/t exw.
 
Brazil: Vale received approval for resumption at Fabrica site

Brazil: Vale receives approval for production resumption at Fabrica

Global iron ore major Vale’s Fabrica site has received a term of suspension of interdiction from the National Mining Agency (ANM), for resumption of beneficiation and pelletizing plants.

  • The gradual resumption of halted operations allows production to remain close to the 6 mn t per annum at Fabrica.
  • It also ensures an improvement in the average quality of Vale’s product portfolio.
  • It allows the miner greater operational flexibility.

However, operational restrictions can impact the quality of pellet feed production.

 
SteelMint pellet index

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:

 

India: Durgapur pellet prices stable in recent deal

Durgapur pellet prices remain 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.

  • SteelMint’s current assessment for Durgapur pellet (Fe 63%) stands at INR 14,500/t exw. Offers from producers in Durgapur are heard at INR 14,500-14,700/t exw.
  • Recently, around 10,000 t of pellet sales were recorded by SteelMint at INR 14,500/t exw.
 

SteelMint: Pellet export index falls amid uncertainty around China’s steel production curbs

Decline in global iron ore prices, absence of firm Chinese bids and bearish market sentiments on steel output cuts in China continue to weigh on the Indian pellet export market. SteelMint’s pellet export index (Fe 64%, 3% Al, FoB east coast) has recorded a drop of around $4/t w-o-w and currently stands at $217/t.

Indian pellet producers had floated export tenders last week. According to market sources, the tenders received poor response. Disparity in bids and offers continue to keep the market muted.

Market sources’ views on prices remain unclear as most participants believe that even bigger production restrictions are on the anvil in China. Liquidity in the market remained low as end-users were not active in procurements, saddled as they are with enough inventories.

“The market is very silent. Lump and pellet demand from end-users are dull amid uncertainties related to production cuts,” highlighted a pellet trader.

“We are offering standard grade pellets at $255/t CFR but there are hardly any buyers. The market is weak,” informed an eastern India-based pellet maker.

The Indian pellet export market witnessed a fall amid quarantine regulations and higher freight rates. Mills have lower buying interest given the uncertainty around steel production cuts. A few trader sources expect prices to correct in the coming time.

Rationale:

  • No pellet deal was heard in the publishing window. Hence, the weightage given to it is 0%.
  • Eight (08) indicative offers were received, out of which six were considered for calculation of the index and given a weightage of 100%.

Market highlights

  • Spot iron ore prices fall sharply: Spot iron ore prices fell sharply today to $213.6/t as against $220.05/t on 19 Jul’21. Prices have dropped by $4.25/t w-o-w as against $217.85/t CFR China a week ago.
  • Iron ore futures slide – Dalian iron ore futures fell by 4.7% on 21 Jul as demand for the steelmaking raw material slumped, with Chinese mills reducing production following government notices. DCE iron ore futures Sept contract today closed at RMB 1,174/t ($181), lower by RMB 59 ($9) d-o-d.
  • Pellet inventory stable w-o-w: Total pellet inventory at major Chinese ports stood at 4.1 mn t, stable w-o-w.

  • Pellet export realisations fall: The ex-plant realisation of Indian pellet exports from eastern India (Odisha) has fallen considerably in the last two weeks and currently stands tentatively at around INR 13,500/t. On the other hand, domestic price indications in Barbil are at INR 15,000-15,100/t (loaded on to wagons). SteelMint’s bi-weekly domestic pellet index, PELLEX, has declined sharply by INR 850/t to INR 14,700/t DAP Raipur.
 
SteelMint pellet index price

SteelMint: PELLEX drops by INR 850/t ($11), trades pick up

SteelMint’s bi-weekly domestic pellet index, PELLEX, has declined sharply by INR 850/t to INR 14,700/t DAP Raipur. A Raipur-based pellet maker sold around 20,000-30,000 t pellet in the domestic market after the price cut announced towards the end of last week.

Raipur-based pellet producer, Jayaswal Neco, has cut offers by around INR 1,400/to INR 14,600/t exw by the end of last week.

Another pellet maker from Raipur has taken maintenance shutdown for this week and will resume from next week. Notably, the other Raipur-based players were not seen offering material in the market due to pending export deliveries. Hence, further decline in prices seem unlikely, as per sources.

A Jharsuguda-based producer has decreased offers by around INR 300/t to INR 14,500/t exw. Offers from Raigarh stand stable at INR 14,800/t exw.

SteelMint’s benchmark pellet sponge (P-DRI, FeM 80%) prices rose by INR 500/t w-o-w to INR 29,500/t exw Raipur on 20 Jul’21. On a daily basis, too, prices for P-DRI increased by around INR 300/t. Enquiries remain active following rising billet demand, which has led to an increase in sponge iron prices since the last few days.

Indian pellet market overview-: Bellary pellet prices increased by INR 300/t today on active buying . However, Western India-based Jindal SAW cut pellet offers by around INR 800/t this week owing to competitive landed offers from Bellary.

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.
  • Deals reported in this publishing window that could have been considered as T1 for index calculation and given a 50% weightage.
  • Six 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 50%.
  • SteelMint received no bids today for the calculation of index.

Region-wise pellet offers and deals :
SteelMint pellet deals table

 

India: Bellary pellet prices rise on active bookings

SteelMint’s assessment for Bellary iron ore pellet (Fe 63%) currently stands at INR 12,800/t exw, up by INR 300/t against the last assessment on 16 Jul’21. Active bookings and steady sponge iron prices keep lending support to pellet offers.

  • Confirmed trade for about 11,000 t of pellets (Fe 63%) were heard concluded at INR 12,800/t exw.
  • SteelMint’s assessment for Bellary P-DRI has increased to INR 29,000/t as against INR 28,600/t exw a week ago.