According to SteelMint’s conversation with market sources, Central India (Raipur) pellet offers have increased further significantly and hit 6 years high. Assessment for this week is at INR 9,700-9,800/MT (basic, GST extra). Trade sources confirmed deals to have concluded at these levels. Similar price levels were last seen in Nov’2012.
In a week’s time prices have gone up by INR 1,200-1,300/MT and in a month’s time prices have climbed by INR 3,200/MT.
Durgapur Pellet prices trading at peak – Durgapur (Eastern India) reference pellet price assessment stands at INR 9,000/MT (delivered) this week. Prices increased by around INR 1,000/MT against last week’s assessment at INR 8,000/MT. Presently hovering prices are highest as per SteelMint’s assessment since mid of 2015.
Factors responsible for the surge of pellet prices-:
1. Limited offers in merchant market – Central India based major pellet makers like Godawari Power & Ispat are still not offering owing to decent export bookings made, led to the material shortage in the merchant market. Other pellet makers are offering limited quantities in the merchant market.
Eastern India based major pellet makers like JSPL, Arya Iron & Steel, Rashmi Metaliks are also not offering in merchant market on limited material availability.
2. Price hike by Odisha based merchant miners – Odisha based merchant miners had increased prices by INR 600-700/MT in August and announced another hike of INR 500/MT. This has made Odisha iron ore prices to hover close to 6 years high.
3. NMDC (C.G) iron ore price hikes: National Mineral Development Corporation (NMDC) has announced price revision. The miner had increased prices by INR 150-370/MT. Fines prices have increased by INR 150/MT.
4. Weather Constraint-: Amid monsoons production and dispatches of material have been hampered.
Trade updates:
1. Jindal SAW pellet offers for Fe 63% increased to INR 9,000/MT (delivered Kandla)
2. Bellary pellet offers moved up to INR 8,200-8,300/MT (basic) for Fe 63%.
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