According to the market sources report to SteelMint, central India based major pellet maker – Godawari Power & Ispat has closed a bulk deal for around 75,000 MT pellets recently. The pellet deal was heard to be concluded at around INR 6,450-6,500/MT (basic prices for Raipur, GST extra). The deal concluded is for Fe 63% pellets on advance payment basis. Nearly 8-10 Raipur based parties have booked material in this deal following which the pellet maker has closed its sales and is likely to quote fresh pellet offers from next week onwards.
Last week, one of central India (Raipur) based pellet manufacturers were concluded a bulk deal of 50,000 MT pellets of Fe 63.5%. The deal was heard to had concluded by around 7 parties in Raipur at an average price of around INR 6,200/MT (ex-Raipur, GST extra).
SteelMint’s price assessment for pellets in Raipur is currently around INR 6,500-6,600/MT (basic, GST extra).
As per trade sources, domestic market trade sentiments have improved in last few days and marginal improvement in sponge pellet prices have also been noticed. P-DRI prices in Raipur have also increased by INR 400-500/MT to INR 20,400-20,600/MT against last week assessment at INR 20,100/MT.
Godawari Power and Ispat Limited is one of the largest steel producers based in Central India and is an end-to-end manufacturer of mild steel wires. In the process, the company manufactures sponge iron, billets, Ferroalloys, captive power, wires rods (through a subsidiary company), steel wires, oxygen gas, fly ash brick as well as pellets.
Company produced 512,050 MT pellets in Q2 FY19, increased by 15% Q-o-Q and 17% Y-o-Y.
Trade update:
1. 5,000 MT pellet from Raigarh was heard to be traded at INR 6,300/MT (basic) a couple of days back.
2. 20,000 MT pellets from Rourkela was heard to be traded at INR 6,300/MT (basic).
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