Western India based pellet maker – Jindal SAW has increased offers by INR 250/MT to INR 8,150/MT (delivered Kandla) against INR 7,900/MT last week. Chinese spot iron ore fines (Fe 62%) index hit two-month high to USD 94.35/MT, CFR China yesterday on 09th Dec 2019. The prices increased by almost USD 5/MT W-o-W as against USD 89.4/MT, CFR China end of last week.
In Durgapur SteelMint’s reference, pellet price at INR 5,900/MT (ex-Durgapur, GST extra) and few offers were also heard at INR 6,000/MT (ex-Durgapur) levels. Durgapur pellet prices are mostly range-bound. P-DRI prices in Durgapur are currently seen at INR 16,700-16,900/MT (Ex-plant) down by INR 200-300/MT against last week at INR 17,100/MT.
Indian domestic pellet market has observed less trades specially in central India. However, the export market has turned active with deals being reported at high prices. Indian pellet export assessment for standard grade pellets stands at USD 113-114/MT, CFR China.
SteelMint pellet reference prices as on 10th Dec’19
| City | Grade (Fe %) | Basic Prices in INR/MT |
| Durgapur | 63 | 5,900 |
| Barbil* | 63 | 5,400-5,600 |
| Jamshedpur | 63 | 5,500-5,600 |
| Raigarh | 63 | 5,700-5800 |
| Bellary | 63 | 6,150-6,300 |
| Jajpur | 63 | 6,250 |
| Kandla** | 63 | 8,150 |
**delivered
* Loaded to wagon
Prices (GST extra) mentioned for min 1000 MT qty booking on advance payment basis
Source: SteelMint Research
India Trade Log-:
— Bellary based pellet makers have sold around 20,000-21,000 MT pellets at INR 6,150-6,300/MT (EXW) in the last two-three days.
— Jamshedpur based pellet maker concluded around 20,000 MT pellet deal to West Bengal based sponge mills at 5,500/MT (Ex-plant) recently.
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