India: Pellet Trades in Domestic Market Weaken Further Amid Dull Buying Interest

Domestic pellet prices in India continue to remain under pressure witnessing fall of up to INR 100-200/MT W-o-W. However, in southern and western India prices have remained unchanged.

Central and eastern India based market participant’s shared dull buying interest in pellets was seen from sponge manufacturers. SteelMint’s Reference pellet price assessment in Raipur is heard around INR 6,700-6800/MT(Basic, GST extra). Trade sources highlighted preference of iron ore over pellets by central India sponge manufacturers.

P-DRI prices have decreased by INR 350/MT to INR 19,750/MT (ex-Raipur) against at INR 20,100/MT (ex-Raipur) a week ago.

Pellet trades in Eastern India remain slow-:

Pellet trades have remained stable with small price correction in eastern India and prices continue to remain under pressure. Reference pellet price assessment for Durgapur stands at INR 6,000-6,200/MT this week. P-DRI prices are down marginally at INR 20,950/MT, decreased by INR 50/MT on weekly basis.

Odisha’s second largest merchant miner, Serajuddin mines has resumed iron ore sales. Earlier on 23rd Feb’18, the Supreme Court permitted Serajuddin mines to resume operations. Market participants expect iron ore prices to move down on improved supply.

Southern India pellet prices remain unchanged -:

Southern India (Ex-Bellary) based pellet manufacturers have steady pellet offers this week amid decreasing P-DRI and billet prices. Current price assessment for Fe 63% grade pellets is heard around INR 7,200 (ex-Bellary).Trade sources also reported deals to have concluded at these levels in small quantities.

Indian Pellet Reference prices as on 27th Feb’18-:

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