Iron ore rake availability issues prevailing in the eastern part of India has further pushed domestic pellet offers this week.
SteelMint learned from market sources that Durgapur based pellet makers have raised their offers for a second time this week. Prices have gone up further by around INR 300/MT to INR 6,800-6900/MT (delivered) against last assessment of INR 6,600/MT (delivered) made at the beginning of this week (5th Jun’18). In a last two week’s time prices have climbed by almost INR 1000/MT.
SteelMint has also learned from the sources that one of the Durgapur based Pellet makers concluded a deal of 3,000 MT pellets at INR 6,800/MT following which it raised offers to INR 6,800-6,900/MT.
West Bengal based Rashmi Metaliks is offering pellets at INR 6500/MT (Ex-Kharagpur) w.e.f today 7th June 2018.
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.
Also, Barbil based pellet maker – Jindal Steel & Power (JSPL) raised offer by INR 300/MT to INR 6200/MT (loaded to wagons).
“Plants are currently facing extremely low pellets stocks amid limited iron ore rake availability. And sponge plants are preferring pellets over iron ore owing to lag in delay of iron ore rakes. This might lead to a further hike in pellet offers in near term”, shared a Durgapur based pellet maker.
P-DRI prices have also increased sharply by INR800/MT to INR 21,300/MT (ex-Durgapur) against INR 20,500/MT a week ago.
Leave a Reply