India’s Domestic Pellet Market Overview – Week 31

Domestic pellet prices in India have remained mostly stable this week with the marginal increase in eastern India by around INR 100/MT W-o-W.

Durgapur based pellet makers raise offers over an increase in P-DRI prices-: In Durgapur (eastern India) reference pellet price assessment stands at INR 6,600-6,700/MT (delivered) this week against last week’s assessment INR 6,500/MT. P-DRI prices have also increased sharply this week at Durgapur to INR 19,900/MT against last week assessment of INR 19,100/MT.

Barbil pellet offers remain unchanged at INR 6,500/MT (loaded to wagons), however, no major deals were reported. Pellet offers from Jajpur are heard at around INR 6,600/MT (ex-plant).

As per the sources, rake availability in the eastern part of India is extremely critical, which has hampered the material movement in the domestic market.

Central India pellet offers stable, trades subdued-: Central India pellet price assessment for this week is at INR 6,500/MT against last week’s assessment of INR 6,400-6,500/MT. Few offers were also heard at INR 6, 600/MT for this week but buying interest was heard at INR 100-150/MT less than the offers.

P-DRI prices have also been increased sharply by INR 500/MT to at INR.20,300/MT (basic) compared to INR 19,800 /MT a week ago.

Southern India pellet offers unchanged amid stable demand-:
Southern India (Bellary) based pellet makers have kept prices unchanged to INR 6,250-6,350/MT in line with last week assessment. As per the sources, the demand is steady in the market. Recently NMDC has decreased iron ore prices in fines by INR 300/MT and INR100/MT in lumps but that price changed has not been affected the market yet.
P-DRI price assessment has also declined by INR200/MT to INR18, 500/MT this week against INR18, 300/MT last week.

Indian Pellet Reference prices as on 31st Jul’18

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