Indian iron pellet prices stable in domestic market amid restricted supply of iron ore and increasing demand from export market. Current prices are hovering at INR 7,000-7,200/MT at Barbil (Odisha)
Iron Pellet, which is a agglomerate of iron ore fines, prices find support in domestic market looking at rising sponge iron prices (which have gone up by INR 400-500/MT in a week’s time) and also increasing export demand. According to trade sources current offers in Barbil (Odisha) are pertaining at INR 7,000 to 7,200/MT (loaded to wagons) for Fe 63%.
In similar lines, pellet prices in southern India are also stable and offers are being made at around INR 7,000-7,200/MT (Ex-Works) for Fe 62-63%.
Pellet prices are also stable in India’s central part, which is also emerging as a leading pellet producing region. Current offers for Fe 63% are hovering in the range of INR 8,000-8,300/MT on ex-works basis.
Export Parity
SteelMint assessed that current offers for exports are in the range of US$145-150/MT FOB India east coast, with exporters having large quantities getting a better price. Also depreciated Rupee against USD has supported exports of iron pellet from India. Big pellet manufacturers like Essar, JSPL, BRPL, Arya capitalizing on it.
Unlike iron ore, pellets does not attract any export duty. However a differential based freight is charged in case of exports of pellets.
India’s pellet capacity is ramping up fast amid high inventory of iron ore fines and consistently falling exports of iron ore. Current installed capacity is around 50 million tonnes per annum and expected to touch around 80 million tonnes in coming years.
Average Iron Pellet Prices
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