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.
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: