India: Pellet Manufacturers Resume Interest in Exports as Domestic Market Softens

Amid recent decline in sponge prices, Indian pellet manufacturers and traders have started exploring interest to export market and are eyeing for levels of USD 118-120/MT, CFR China.

Few of the pellet makers are also heard to explore the export market with expectations of around USD 118-120/MT, CFR China. However no deals were reported yet, but buying interest was reported at around USD 117-118/MT, CFR.

Pellet offers in Indian domestic market have remained mostly stable this week with minor corrections in few regions. In eastern regions of India, market participants reported stability in domestic offers amid no significant change in demand.

Central India pellet offers remained unaltered this week. Major pellet makers in Raipur are heard giving offers at INR 7,200/MT (ex-works, GST extra). However, market participants reported few deals to have carried out in the price levels of INR 7,200/MT (ex-works, GST extra).

Central India based sponge manufacturers have reduced their offers P-DRI prices have declined to INR 20,050/MT (ex-works) against INR 21,300-21,400/MT last week. Similarly, in Durgapur, P-DRI prices have reported a decline of INR 400/MT W-o-W.

 Trade-wise:

1. Durg (C.G) based pellet maker is offering pellets at INR 7,100/MT (ex-plant).

2. A major pellet maker in Jharsuguda concluded a deal around 5,000 MT at INR 6800/MT (ex-plant).

3. Pellet offers in Jamshedpur assessed around INR 6,500/MT (basic).

Indian Pellet Reference prices as on 23^rd Jan’18

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