India: Jindal SAW Raise Pellet Offers Amid Global Iron Ore Price Hike

West India (Rajasthan) based pellet maker – Jindal SAW has increased pellet prices by INR 150/MT. Current offers for Fe 63% grade pellets have moved up to INR 7,650/MT (delivered Kandla) against a previous assessment of INR 7,500/MT. Jindal SAW runs a 1.5 MnT pellet plant in Bhilwara (Rajasthan).

Spot iron ore prices in China have increased by 3% W-o-W to USD 68.95/MT, CFR China yesterday as against USD 66.95/MT at the beginning of last week. Spot iron ore prices increased amid supply concerns from Rio Tinto over their rail maintenance works in September.

Few East India based pellet makers raise offers further over an increase in P-DRI prices-:

In Durgapur (eastern India) reference pellet price assessment stands at INR 6,700/MT (delivered) this week against last week’s assessment INR 6,600-6,700/MT. P-DRI prices have also increased significantly this week at Durgapur to INR 21,200/MT against last week assessment of INR 19,900/MT.

Barbil pellet offers remain unchanged at INR 6,500/MT (loaded to wagons), Pellet offers from BRPL, Jajpur is heard at around INR 6,700/MT (ex-plant) against the last week assessment which was INR6,600/MT. Post-hike in Odisha iron ore fines prices and Sponge prices, pellet offers have moved up.

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

SteelMint has heard from the sources, that one of the major Durgapur based pellet maker is undergoing maintenance shutdown which has to lead to reduced material in merchant market resulting in prices to remain supported.

Southern India pellet offers Inch up-:

Southern India (Bellary) based pellet makers have increased prices to INR 6,350-6,450/MT in this week against last week assessment which was INR 6,250-6,350/MT.As per the sources, the demand is steady in the market. Due to the increased prices for P-DRI, pellet makers have raised prices.

P-DRI price assessment has increased sharply by INR800/MT to INR19, 300/MT this week against INR18, 500/MT last week.

Central India pellet offers stable, Amid Weaker Demand-:

Central India pellet price assessment for this week is at INR 6,500-6,600/MT in line with last week’s assessment. 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 owing to the weaker demand.
P-DRI prices have also been increased sharply by INR 600/MT to at INR.20, 800/MT (basic) compared to INR 20,200 /MT a week ago.

Indian Pellet Reference prices as on 7th Aug’18

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