Indian pellet offers in the domestic market have increased from INR 300-800/MT against the beginning of last week. As per market participants report to SteelMint, that the shortage of pellets escalating the prices higher. Very limited deals at high prices were reported to cater urgent needs. Due to monsoon iron ore availability is still an issue prevailing in eastern and Central India.
Central India Pellet prices touch INR 10,000/MT -: According to SteelMint’s conversation with market sources, Central India (Raipur) pellet offers have increased further significantly and hit 6 years high with a deal for around 5,000 MT being reported. Assessment for this week is at INR 10,000/MT (basic, GST extra). Similar price levels were last seen in Jul’2012. In a week’s time prices have gone up by INR 600/MT.
Durgapur Pellet prices trading higher- Durgapur (Eastern India) reference pellet price assessment stands at INR 9,000/MT (delivered) this week. One of the pellet makers from eastern India (Ex-Durgapur) has concluded a deal at this level. They have sold around 2000-3000 MT pellets. Domestic sponge & billet prices since yesterday and P-DRI prices have come down by INR 500-600/MT D-o-D.
Southern India pellet offers at its almost four year’s high-: Southern India (Bellary) based pellet makers increased pellet price by to INR 400-500/MT to INR 8,200-8,300/MT (basic) INR 7,800-8,000/MT in last week assessment. Similar price levels were last seen in Nov’2014.
P-DRI prices have also increased at INR 23,700/MT against last week assessment at INR 22,400/MT.
Indian Pellet Reference prices as on 11th Sept’18
| Regions | Grade (Fe %) | Basic Prices in INR/MT |
| Barbil* | 63 | 8,600-8,700 |
| Jharsuguda | 63 | 9,000 |
| Jajpur | 63 | 8,900 |
| Durgapur | 63 | 9,000 |
| Raipur | 63 | 10,000 |
| Bellary | 63 | 8,200-8,300 |
| Kandla** | 63 | 9,000 |
*loaded to wagons
**delivered
Prices (GST extra) mentioned for min 1000 MT qty booking on advance payment basis
Source: SteelMint Research
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