Domestic pellet offers in India have increased sharply this week. The increase in pellet domestic offers is on higher realization in exports on improved demand from overseas buyers amid less seaborne pellet supply have supported price uptick in domestic market. Indian pellet export reference price assessment is hovering at 4 years high at around USD 122-123/MT, FoB India for regular grade.
Eastern India based Pellet makers increase pellet offers
In Durgapur (eastern India) reference pellet price assessment stands at INR 7,000-7,100/MT (delivered) this week, up significantly by around INR 300-400/MT against last week’s assessment at INR 6,700/MT. Eastern India prices have depicted significant rise for the week owing to scarcity of material due to few major pellet maker undergoing maintenance shutdown, which has reduced availability in merchant market and supporting price hike by other miners. Besides, rake availability issues in eastern India still persist further rendering constraints of material availability in the market.
Barbil based pellet maker Jindal Steel & Power is not offering in the domestic market. Pellet offers from BRPL, Jajpur is heard at around INR 6,600/MT (ex-plant).
Central Indian Pellet makers also raise offer post recent export deals
Central India (Ex-Raipur) pellet offers have also increased significantly this week. Assessment for this week is at INR 6,800-INR 7,000/MT against last week’s assessment of INR 6, 600/MT.
As per sources report to SteelMint, central India based pellet maker have concluded deals this week at around INR 6,700-6,800/MT and are expecting to settle at higher prices by week end. Last week central India based pellet maker was heard to have closed an export deal at around USD 122-123/MT, FoB.
Southern India pellet offers Inch up-:
Southern India (Bellary) based pellet makers have increased prices to INR 6,500/MT in this week against last week assessment which was INR 6,350-6,450/MT. As per the sources, the demand is steady in the market. The offers are expected to be hovering around INR 6,400 – 6500/MT for the week with not many fluctuations.
Indian Pellet Reference prices as on 14th Aug’18
| City | Grade (Fe %) | Basic Prices in INR/MT |
| Barbil* | 63 | 6,700 |
| Jajpur | 63 | 6,600 |
| Durgapur | 63 | 7,000-7,100 |
| Raipur | 63 | 6,800-7,000 |
| Bellary | 63 | 6,500 |
| Kandla** | 63 | 7,800 |
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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