India: Domestic Pellet Prices Weaken Amid Less Trades

Pellet offers in India’s domestic market have decreased against the assessment made at the beginning of last week.

Central India:  According to SteelMint’s conversation with market sources, Central India (Raipur) pellet offers have decreased further. Assessment for Fe 63% pellets this week is at INR 9,000- 9,100/MT against an assessment of INR 9,000-9,200/MT (basic) at the beginning of last week. Buying interest is INR 100-200/MT below than current offers resulting in limited trades. Few of the major pellet makers have already booked decent quantities a couple of weeks back when prices were at high levels hence they are not actively offering in the market.

P-DRI prices in Raipur have also decreased sharply by INR 900/MT to INR 23,900-24,000/MT against last week assessment at INR 24,900/MT.

Eastern India: Barbil based pellet maker – Jindal Steel & Power is not heard quoting offers in the domestic market. Durgapur pellet price assessment has also lowered slightly by INR 100/MT W-o-W to INR 8,400-8,500/MT (delivered). Rashmi Metaliks is not offering pellets in the domestic market.

Southern India: Southern India (Bellary) based pellet makers have kept pellet price stable to INR 8,200-8,300/MT (basic) in line with last week assessment.

P-DRI prices have decreased by INR 300/MT to INR 23,400/MT against last week assessment at INR 23,700/MT.

Trade-wise Updates-:

1. Jajpur based pellet maker continues to hold the same pellet offers around Rs 8,900/MT (ex-Jajpur).

2. Western India pellets maker Jindal SAW is not offering pellets amid less stock availability. Last offers heard were at INR 9,400/MT (delivered Kandla).

Indian Pellet Reference prices as on 25th Sept’18

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