PELLEX Rationale
PELLEX- DAP Raipur (Delivered Price - Plantsite in Raipur) INR 6,200/WMT*
Date and Time of publication 22 November, 2019 & 18.30
(IST)
Publishing Window Wednesday to Friday
Last Index Price (15 Nov, 2019) INR 6,100/wmt
% change 2
* Rounded off to the nearest multiple of 50
* Prices on delivered basis (including freight) to a DRI maker in Raipur
Quantity in MT
Prices in INR per WMT
Concluded Transaction Price
  • PELLEX (DAP Raipur), 63.5% Fe up by INR 100/MT to INR 6,200/wmt in recent deals.
  • Deals of about 10,000-20,000 MT pellets reported from Raipur market at INR 6,100/MT (Ex-Raipur); normalizing for freight to Raipur at INR 6,250/MT (DAP Raipur).
Firm Offers
  • Raipur based pellet makers raised offers by INR 100-200/MT to INR 6,200-6300/MT( Ex-plant); normalizing for freight to Raipur at INR 6,350-6450/MT (DAP Raipur). 
  • Raigarh based pellet offers stable at INR 5,500 (Ex-plant), normalizing freight to Raipur at INR 6,150/MT (DAP Raipur). One of the pellet makers from Raigarh will be taking maintainence shutdown for next week.
  • A Central India (Durg) Based pellet maker concluded 4000-5000 MT pellet deal in local market at around INR 6,100-6,200/MT (Ex-Plant).
Firm Bids
  • No bids were reported in this publishing window.
  • SteelMint P-DRI Assessment (Nov 22, 2019) increased by INR 100/MT to INR 16,500/MT (Ex-Raipur) against INR 16,400/MT towards beginning of the week.
Export Realization
  • A Southern India based pellet maker concluded pellet export deal in this publishing window for 50,000 MT pellets consisting of Fe 64% content with less than 2% alumina at around USD 98/MT, FoB India.
  • In another export deal, an East India based pellet maker concluded 50,000 MT pellet deal to China for Fe 64% and 2.5% Al at around USD 106/MT, CFR China for early Dec’19 shipment.
  • SteelMint Pellet export assessment stands at USD 94-95/MT, FoB India. Ex -Plant export realization for Raipur pellet maker at INR 5,400- 5,450/WMT.
  • In Central India the export market is semi-liquid, therefore export realization factor has been ignored in the computation of PELLEX.
Substitute Parity Price
  • Odisha's major merchant iron ore miners have increased iron ore lump offers from 20th Nov’19. Miners have increased prices for 5-18 mm (Fe 63%) by INR 300/MT to INR 3,900-4,000/MT (ex-mines, including Royalty, DMF, & NMET).
  • Considering the landed cost of Lump and other factors like yield, conversion cost, etc for NMDC and Orissa; the substitute parity price for Pellet is at INR 5,920/MT (DAP Raipur).
Deals from Other Regions
  • Bellary based major pellet maker has concluded about 30,000 MT pellet deal at INR 6,300-6,400/MT (Ex-plant).
  • In another deal, South India based pellet makers sold 3,000 MT pellets at INR 6,250/MT (Ex-plant).
  • A Jamshedpur based pellet maker concluded about 5000 MT pellet deal at INR 5,500/MT (Ex-Plant) early this week.
Statistical Exclusion for Bids and Offers
  • No bids and offers excluded.
Download Rationale
 

PELLET SPECIFICATION
India Domestic Pellet specification, DAP Raipur
S. No. Particulars Specifications
1 Price INR per metric tonne
2 Fe Content Base 63.5%, Range 63% to 64%
3 Silica Base 3.5%, Maximum 5.0%
4 Alumina Base 2.0%, Maximum 4.0%
5 Combined Silica/Maximum 7.0% Alumina Maximum 7.0%
06 Trade Size Minimum 2,500 MT, Maximum 10,000 MT
07 LOI Base 3.0%
08 Delivery Terms DAP Raipur (Delivered to Buyers site in Raipur)
09 Delivery period Within 2 -4 week
10 Assessment Frequency Twice in a Week
11 Data collection Window 1 - Monday 9.00 until Tuesday 17.30 (IST) Window 2 - Wednesday 9.00 until Friday 17.30 (IST)
12 Publication Window 1 - Tuesday 18.30 (IST) Window 2 - Friday 18.30 (IST)
13 Payment Terms Advance (Loaded to Truck)
Download Methodology
 

Note:

  • Transactions/market information not covered in the previous cycle to be considered in the next cycle
  • PELLEX assesses DAP Raipur Prices. DAP is Delivered at Place, meaning prices on delivered basis (including freight) to a DRI maker in Raipur
  • For more details, refer to SteelMint PELLEX Methodology document
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