Declining semi-finished steel trades and plunge in pellet export bids from China has put Indian domestic pellet offers under pressure.
Durgapur pellet prices hit 3-month low- Durgapur pellet price has come down significantly by INR 200-300/MT W-o-W to INR 7,500-7,600/MT. Similarly, pellet manufacturers in Barbil and Jamshedpur have also cut offers by INR 400/MT.
Jajpur based Brahmani River Pellet is offering pellets at INR 8,000/MT in Kalinganagar belt.
Amid falling pellet export prices, eastern India pellet makers were compelled to reduce offers in the domestic market. Indian pellet export prices have come down by USD 20/MT M-o-M.
Brahmani River Pellets concluded a pellet export deal for 59,500 MT to China at USD 126/MT, CFR last week. The vessel name ‘’Neo Beachwood” is at port currently for loading pellets.
Central India Pellet offers slide further on falling P-DRI prices- According to market sources, Central India (Raipur) pellet offers have decreased sharply by 3-month low from the last week assessment. Pellet offers from major pellet makers are around INR 7,400-7,500/MT which is INR 400-500/MT down against INR 7,800/MT-8,000/MT last week. This kind of prices was seen in the mid of Aug’18.
One of the steelmakers in Central India concluded a deal for 21,000 MT pellets at around INR 7,200/MT including discount at the purchase.
P-DRI prices in Raipur have also declined marginally to INR 21,000/MT against last week assessment at INR 21,100/MT. Prices have come down amid limited inquiries and dull market sentiments.
Southern India pellet prices edge up – Southern India (Bellary) based pellet makers have increased by INR 100/MT to INR 7,400-7,500/MT (basic) against last week’s assessment. P-DRI prices also increased by INR 200/MT to INR 21,000/MT against INR 20,800/MT last week assessment.
Jindal SAW resumes pellet offers for domestic market – West India based pellet maker – Jindal SAW has resumed quoting offers in the domestic market and current offers for Fe 63% pellets are assessed at INR 9,200/MT (delivered Kandla).
Indian Pellet Reference prices as on 13th Nov’18
| Regions | Grade (Fe %) | Base Prices INR/MT |
| Durgapur | 63 | 7,500-7,600 |
| Barbil* | 63 | 7,000-7,100 |
| Jamshedpur | 63 | 7,100-7,200 |
| Raipur | 63 | 7,400-7,500 |
| Bellary | 63 | 7,400-7,500 |
| Kandla** | 63 | 9,200 |
*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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