India: Domestic Pellet Prices Weaken; Limited Deals Reported

Indian pellet offers have exhibited downturn this week and witnessed decline in majority of markets.

Domestic pellet market continued to observe bearish sentiments amid declining sponge prices and lowered bids from sponge makers.

Raipur based steel maker booked 10,000 MT pellets – Central India (Raipur) based pellet makers have kept offers unchanged at INR 6,700/MT (Ex-Raipur) against the last week’s. One of the major steelmakers from Raipur has recently concluded around 10,000MT pellet at INR 6,700/MT. Major pellet buyers are not interested to buy at these offers and are expecting a drop in offers. According to market sources report to SteelMint, pellet offers from Raigarh based pellet makers is around INR 6,100-6,300/MT (Ex-Raigarh).

P-DRI prices for Raipur decline sharply by INR 950/MT to INR 18,800/MT against last week’s assessment at INR 19,750/MT.

Durgapur pellet makers slash offer; limited deals reported – SteelMint’s current pellet assessment for Durgapur is around INR 6,000-6,200/MT this week down by INR 200-300/MT against last week’s assessment. As per the market participant reported SteelMint that one of the pellet makers from Durgapur concluded 5,000 MT pellet at around 6,000/MT recently. P-DRI prices for Durgapur decline sharply by INR 1000/MT W-o-W to INR 17,800/MT.

Southern India pellet offers decline – Southern India (Bellary) pellet offers for Fe 63% grade decline to INR 7,000-7,200/MT (basic) this week against last week’s assessment at INR 7,200-7,400/MT. P-DRI price decreased sharply by INR 1,200/MT to INR 19,000/MT against last week assessment INR 20,200/MT.

Indian pellet trade updates-:

–Jajpur based Brahmani River Pellets is offering pellets at INR 7,100/MT to Kalinganagar based units.

— No firm offers from Barbil manufacturers was reported

— Trade sentiments for Indian pellet exports remain weak amid dull Chinese demand

Indian Pellet Reference prices as on 12th Mar’19

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