Southern India Pellet Offers Move Up Amid Firm P-DRI Prices

Southern India (Bellary) based pellet manufacturers have raised offers this week amid good demand and firm P-DRI prices. Bellary pellet offers have moved up by around INR 500/MT against our last assessment. Current offers for Fe 63% grade pellets are heard around INR 7,500-7,600/MT (ex-Bellary).Trade sources also reported deals to have concluded at these levels by a major pellet manufacturer in southern India.

P-DRI (78 FeM) prices in Bellary have remained firm in last one week at INR 20, 200/MT (ex-plant). Market participants reported strong market sentiments.

Eastern & central India pellet offers remain stable-:

After witnessing a sharp hike in past 2-3 weeks, central India and eastern India pellet offers have remained stable this week. Durgapur pellet offers are assessed at INR 7,300/MT and that in Raipur around INR 7,500/MT.

However, trade activities at increased prices were dull and buying interest was not noticed much this week. Few other major pellet makers in Central India are not offering material owing to maintenance shutdown in the plant.

Trade-wise:

1.Durg based pellet maker is offering pellets at INR 7,200/MT (ex-Durg).

2. A major pellet maker in Southern India concluded a deal of 25,000 MT at INR 7,600/MT. Another major pellet maker in Bellary concluded a deal for 12,000-13,000 MT at INR 7,350/MT and then raised offers to INR 7,400-7,600/MT.

3. Pellet offers in Jamshedpur assessed around INR 6,600/MT (basic).

Indian Pellet Reference prices as on 09^th Jan’18

*loaded  to wagons
**delivered
Prices (GST extra) mentioned  for min 1000 MT qty booking on advance payment basis
Source: SteelMint Research