India: Domestic Pellet Prices in Eastern India Descend Further

Domestic pellet prices in eastern India continue to remain under pressure witnessing fall of up to INR 100-300/MT W-o-W. However, in other markets pellet prices have remained unchanged this week.

Central and eastern India based market participant’s shared dull buying interest and slow down in buying activities has resulted in gloomy sentiments in the domestic market. In Durgapur (eastern India) pellet offers have come down by INR 200-300/MT W-o-W.
Few trade sources reported that the market has turned buyer-centric and buyers asking for discounts from suppliers.

Also with the decline in spot iron ore prices in China, Indian pellet export assessment has also come down marginally. As per few sources, Indian origin pellet stock at Chinese major ports was sold recently at USD 112-113/MT, CFR. Thus pellet price assessments in both domestic and global markets have moved downwards.

Indian domestic pellet market update: Week 12

1. Reference pellet price assessment for Durgapur stands at INR 5,800/MT this week. P-DRI prices have decreased marginally by INR 100/MT W-o-W at INR 20,100/MT.

2. Southern India (Ex-Bellary) based pellet manufacturers have kept pellet offers unchanged. Current price assessment for Fe 63% grade pellets is heard around INR 7,200 (ex-Bellary) same as from the last few weeks no change has been noticed this week also.

3. Western India pellet maker Jindal SAW has kept offers unchanged at INR 6900/MT (delivered Kandla) but the market participants eye for the decline in offers overfall in global prices. Spot iron ore fines index yesterday closed at USD 67.35/MT, CFR yesterday. Assessment for South African lump stands at USD 85-86/MT, CFR India.

4. As per sources, NMDC is offering pellets in the domestic market. Offers are assessed around INR 6400/MT (FOT ex-Donimalai pellet plant, taxes extra as applicable).

Indian Pellet Reference prices as on 20th Mar’18-:

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