Indian Pellet Makers Hike Offers; Trade Volumes Limited

India pellet offers have increased sharply this week further by INR 300-700/MT amid hike in sponge prices and expectation of hike in iron ore prices by Odisha merchant miners. However SteelMint learned from market sources that trade volumes have remained low at revised offers.

Durgapur pellet offers have witnessed increased by INR 900-1200/MT and current assessment is around INR 7,300-7,500/MT this week against last week’s assessment of INR 6,400/MT. P-DRI prices have also increased by INR 1,200/MT to INR 21,000/MT against last week at INR 19,800/MT.

No active offers from Barbil based pellet makers reported this week.

Central India pellet offers trading at 3-month high – Raipur (Central India) based pellet makers have increased offers almost three month high to INR 8,000/MT (Ex-Raipur) against the last week’s assessment at INR 6,800/MT. P-DRI prices are also increased sharply by INR 1,800/MT to INR 21,700/MT against INR 19,900/MT.

Southern India Pellet offers increased sharply – Southern India (Ex-Bellary) pellet prices have offers increased significantly by INR 600-800/MT to INR 7,500-7,700/MT (basic) this week as against the last week’s assessment at INR 6,900/MT. P-DRI price increased to INR 20,900/MT against last week assessment INR 19,600/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. Jajpur based Brahmani River Pellets is offering at INR 8,300/MT for Kalinganagar.

Indian Pellet Reference prices as on 12th Feb’19

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

However, it would be interesting to see that amid fall in global iron ore prices and limited pellet trades in Indian domestic market, how long pellet manufacturers continue to hold offers on higher side?