Eastern India Pellet Prices Weaken in Domestic Market; Trades Reported

Durgapur, eastern India pellet prices have moved down further by INR 100-200/MT this week to INR 6,000/MT against last week’s assessment of INR 6,100-6,200/MT. Trade sources mentioned limited trades to have reported at these prices. The prices are hovering to seven months low as these levels were last seen in May’18. P-DRI price has increased sharply by INR 1,300-1,400/MT to 19,900-20,000 INR against last week’s assessment at INR 18,400-18,600/MT.

Participants still eye for clarity in market conditions as Odisha miners are revising iron ore prices over increased iron ore output by miners to utilize EC limits.

Southern India Pellet market continues to stable- Southern India (Bellary) pellet prices have remained stable at INR 7,200 (basic) from the last two week’s assessment. P-DRI price is also in line with the last week assessment to INR 19,500-19,700/MT.

Central India pellet makers hold offers – Raipur based pellet makers haven’t quoted fresh offers. SteelMint’s current assessment for Raipur pellet stands at around INR 6,200/MT (ex-Raipur). Market sentiments are still low and very limited deals were reported.

P-DRI prices in Raipur are also almost stable at INR 19,500-19,700/MT against last week assessment at INR 19,400-19,600/MT.

India pellet trade updates-:

1. West India based pellet maker – Jindal SAW offers has kept offers from the last two weeks at INR 8,300/MT, delivered Kandla. Demand was learned to be slow. No fresh export bookings from pellet maker was reported.

2. Barbil based Jindal Steel & Power is not offering pellet in the domestic market. However Arya Iron & Steel is offering pellets at INR 5,500/MT (loaded to wagons).

3. Jajpur based Brahmani River Pellets is offering at INR 6,700/MT (ex-plant)

Indian Pellet Reference prices as on 1st Jan’19

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