Rake availability issues in eastern India have accelerated pellet prices in Durgapur region further.
SteelMint learned from market sources that Durgapur based pellet makers have raised their offer second time this week. Prices have gone up by INR 250/MT to INR 6,500/MT (delivered) against last assessment of INR 6,200-6,300/MT (delivered) made at the beginning of this week. In a week’s time prices have increased by almost INR 700/MT.
SteelMint has also learned from the sources that one of the Durgapur based Pellet makers concluded a deal of 5,000MT pellets at INR 6,500/MT.
According to SteelMint’s assessment, current prices are hovering at almost 4-month high as towards the end of Jan’18 prices were hovering in the range of INR 6,700-6,800/MT.
Trade sources highlighted that plants are currently facing extremely low iron ore rake availability in the eastern region which has hampered material movement. Market participants reported that most of the rakes diverted for coal for govt. owned power units. As per sources, the scenario might continue for next 20-25 days.
P-DRI prices have also increased to INR 20,900/MT (ex-Durgapur) against INR 20,300/MT a week ago.
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