Domestic pellet market in India has witnessed limited trades this week. Prices across major markets fell by INR 100-200/MT W-o-W except southern India where prices remained firm.
Durgapur pellet offers down marginally: In Durgapur SteelMint’s reference, pellet price decreased by INR 100-200/MT to INR 5,500-5,600/MT (ex-Durgapur, GST extra), against INR 5,600-5,800/MT last week. One of the major pellet makers from Durgapur concluded 5,000 MT pellet deal at INR 5,600/MT (Ex-plant).
P-DRI prices in Durgapur down sharply by INR 1,000 MT W-o-W to INR 16,500/MT against INR 17,500/MT (Ex-plant) last week.
Raipur based pellet offers stable; bids fall-: Raipur (Central India) pellet makers have kept offers firm this week. Current offers for Fe 63% grade pellet is at INR 6,000/MT (ex-Raipur, GST extra) in line with last week offer. Limited transaction reported this week on decreased pellet offers.
Last week NMDC decline lumps offer by INR 200/MT and DRCLO by INR 230/M. Today Odisha’s Serajuddin mines also lowered iron ore lumps (5-18 mm) prices by INR 300/MT to INR 3,400/MT ex-mines, including Royalty, DMF & NMET.
Raipur based sponge makers continue to bid lower by INR 300-400/MT lower than current offers.
P-DRI prices in Raipur moved down by INR 500/MT on weekly basis to INR 16,200/MT as against last week assessment at INR 16,700/MT (ex-Raipur).
Southern India pellet offers remain firm: Southern India (Bellary) based pellet makers kept pellet prices stable to INR 6,500-6,600/MT (ex-Bellary) in line with last week offer amid material availability tightness over two plants facing maintenance shutdown. Two major pellet makers from Bellary continue to be on maintenance shut down.
One of the pellet makers from Bellary concluded 1000 MT pellet deal from NMDC Donimalai at INR 6,200/MT (FoT Basis).
P-DRI prices in Bellary decreased by INR 350/MT W-o-W to INR 16,350/MT as against INR 16,700/MT last week.
Indian pellet trade updates:
— Jajpur based pellet maker, BRPL is offering pellets to Kalinganagar based units at INR 6,550/MT
— Western India (Rajasthan) based pellet maker -Jindal SAW kept pellet (Fe 63%) offers stable at INR 8,100/MT (delivered Kandla).
— Jamshedpur offers for pellet witnessed at INR 5,500-5,600/MT (Ex-plant).
— Monnet Ispat Ltd (Raigarh) is offering pellets at INR 5,800/MT (Ex-plant) and concluded 10,000 MT Pellet at the local market in Raigarh at INR 5,800/MT (Ex-plant) yesterday.
— A major buyer in Kalinganagar region confirmed to have received offer of INR 5,800/MT loaded to wagons from Keonjhar based plant.
SteelMint pellet reference prices as on 24th Sept’19
| City | Grade (Fe %) | Basic Prices in INR/MT |
| Durgapur | 63 | 5,600 |
| Barbil* | 63 | 5,500-5,700 |
| Jamshedpur | 63 | 5,500-5,600 |
| Raigarh | 63 | 5,800 |
| Raipur | 63 | 6,000 |
| Bellary | 63 | 6,500-6,600 |
| Kandla** | 63 | 8,100 |
**delivered
* Loaded to wagon
Prices (GST extra) mentioned for min 1000 MT qty booking on advance payment basis
Source: SteelMint Research
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