India’s Domestic Pellet Market Trade Log – Week 2, 2019

This week pellet prices in eastern and Southern India witnessed weak further, however, offers in central India stable.

Durgapur pellet prices weaken further on falling sponge prices- Durgapur pellet prices have witnessed decline further by INR 100-200/MT to INR 5,600-5,700/MT this week against last week’s assessment of INR 5,700-5,800/MT.

P-DRI prices have decreased sharply by INR 1000-1100/MT to INR 18,900-19,100 as against last week assessment at INR 19,900-20,100/MT.

Southern India Pellet offers reduce – Southern India (Bellary) pellet prices have decreased offers to INR 7,000-7,100/MT against INR 7,200 (basic) last week’s assessment. P-DRI price also declines to INR 18,900-19,100/MT against last week assessment INR 19,500-19,700/MT. Both Sponge and pellet prices were stable last week.

Central India pellet offers stable – Raipur based pellet makers haven’t changed offers against the end of the last week assessment. SteelMint’s current assessment for Raipur pellet stands at around INR 6,000/MT (ex-Raipur). Market sentiments are still low and very limited deals were reported.

P-DRI prices in Raipur are also down sharply by INR 1000-1200/MT to 18,400-18,600/MT against last week assessment at INR 19,500-19,700/MT.

Last week NMDC (C.G) slashed iron ore prices by INR 300-465/MT.

India pellet trade updates-:

1. West India based pellet maker – Jindal SAW has kept offers unchanged at INR 8,300/MT, delivered Kandla.

2. Barbil based Jindal Steel & Power is not offering pellet in the domestic market. However Arya Iron & Steel is offering pellets at INR 5,100/MT (loaded to wagons).

3. Jajpur based Brahmani River Pellets is offering at INR 6,300/MT (ex-plant).

Indian Pellet Reference prices as on 8th Jan’19

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