PELLEX Up Marginally at INR 6,150/WMT

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PELLEX up marginally at INR 6,150/wmt (DAP Raipur) due to recent transaction. Raipur based pellet maker concluded a pellet deal for around 5000 MT at INR 6,200/MT (Ex-plant); normalizing for freight to Raipur at INR 6,350 (DAP Raipur).

Raipur based plants’ have kept their offers stable at INR 6,200/MT( Ex-plant); normalizing for freight to Raipur at INR 6,350/MT (DAP Raipur). A major Raipur based pellet maker has taken maintenance shutdown for next 7-10 days and will start offering from next week.

SteelMint P-DRI assessment (Aug 27, 2019) is up by INR 450/MT D-o-D to INR 16,200/MT (Ex-Raipur) against INR 15,750/MT (Ex-Raipur) yesterday amid hike in semi and finished steel prices.

One export transactions were reported to Malaysia (Southeast Asia); however, no export witnessed for China amid bearish Chinese demand. Pellet Export realization stands stable at USD 96-100/DMT FoB (Al 3%) due to the absence of bids from China. Indicative offers further lowered by USD 2-3/DMT.

Why PELLEX? India has installed pellet capaci1ty of 85 MnT pa and an annual production of around 65-66 MnT. 5 major states – Odisha (28.9 MnT), Karnataka (19.5 MnT), Chhattisgarh (9.6 MnT), Jharkhand (8.4 MnT) and Andhra Pradesh (8 MnT) – covers around 85-90% of the capacity. Based on the above we have chosen Raipur as our index base as this market seems more active from a domestic merchant trading perspective along with exports. Also, Chhattisgarh has a good base for sponge iron makers (DRI) who procure a decent amount of pellets.

These factors have led SteelMint to launch this index of PELLET on DAP Raipur basis.
The proposed specifications, along with delivery terms were devised following consultation with market participants. They are as follows:
1. Fe Content – Fe 63-64%
2. Combined Silica & Alumina – 7%
3. Trade Size – 2,500-10,000 MT
4. Payment terms – Advance

SteelMint will continue to monitor changes in the pellet markets and will adjust its methodology in accordance with the market participants.

To provide feedback/suggestions, please contact info@steelmint.com