Domestic pellet offers in India have increased sharply this week. A significant hike in offers was seen in eastern and Southern parts of the country. However in western India and central India pellet offers have remained unaltered.
Eastern India Pellet maker raised offers sharply Amid Rake availability Issues-:
In Durgapur (eastern India) reference pellet price assessment stands at INR 6,200-6,300/MT (delivered) this week against last week’s assessment of INR 5,800/MT. Pellet prices in Durgapur have increased significantly by INR 450/MT W-o-W.
Trade sources reported there is lack of raw material availability for pellet making. Trade sources mentioned that iron ore dispatches have been hampered owing to limited rake availability. As a result of this indents are getting canceled and material delivery is disrupted. This has boosted demand for pellets.P-DRI prices assessment INR 20,500/MT this week against INR 20,300/MT (delivered) last week.
Southern India Pellets Prices increased owing to upward movement in sponge prices-:
Southern India (Bellary) based pellet makers have increased offers by INR 200/MT by 6,900/MT against INR 6,700/MT last assessment. P-DRI price assessment increased by INR 300/MT to INR 19,800/MT against INR 19,500/MT last week assessment.
Indian Pellet Market update: Week 22, 2018
1. Central India (Ex-Raipur) pellet prices assessment for this week is at INR 6,000-6,100/MT against last week’s assessment of INR 6000/MT. Market participants mentioned low trade activities and low demand for pellets. P-DRI prices assessed at INR.19, 550/MT (basic) compared to INR 19,700 /MT a week ago.
2. Western India pellet maker Jindal SAW has kept offers unchanged at INR 6750/MT (delivered Kandla) after reducing offers in mid of last week owing to decline in global iron ore prices.
3. Barbil based pellet maker – Jindal Steel & Power is offering pellets at INR 5,900/MT (loaded to wagons) against last offers of INR 5,500/MT at the beginning of last week.
Indian Pellet Reference prices as on 29th May’18
| City | Grade (Fe %) | Basic Prices in INR/MT |
| Barbil* | 63 | 5,900 |
| Durgapur | 63 | 6,200 – 6,300 |
| Jamshedpur | 63 | 5,300-5,500 |
| Raipur | 63 | 6,000-6,100 |
| Bellary | 63 | 6,900 |
| Kandla** | 63 | 6,750 |
Prices (GST extra) mentioned for min 1000 MT qty booking on advance payment basis
*loaded to wagons
**delivered
Source: SteelMint Research
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