Restriction in movement of Iron ore for 14 hrs (6 a.m. to 8 p.m.) by state government in order to avoid road congestion and only 70% of the raw material been allowed to mine, out of the total EC limit, has resulted in low Iron ore supply in Odisha.

One of the manufacturers in eastern region says, “I foresee a favorable demand in Pellets till March because issues around Iron ore availability is likely to remain unresolved. Pellet exports should continue as INR is stable at 62 against USD and demand from Chinese buyers continues to be good. Hence, domestic Pellet offers have limited room for correction.”

Pellet Prices in Odisha gain strength

Other Manufacturers maintain Price levels

Central India based Pellet producers maintain offers at INR 8,000-8,200/MT (ex works). They mentioned that raw material is costly along with low supply and Pellet prices might move up, if Rupee weakens.

Fe 63 Pellet offers remain stable at INR 7,250-7,300/MT (basic) and Fe 61 at 6,800 in Bellary (Karnataka), on account of good demand.

A senior official in Bellary says, “We are expecting an increase in prices in near term, looking at expensive  of Iron ore and mismatch in demand (high) and supply (low). Also, Sponge iron offers have sustained at last week’s level”.

Pellet maker in Tatanagar (Jamshedpur) is planning to raise offers to INR 7,800/MT (basic); current offers at 7,700.

Jajpur based Pellet Maker takes a Shut Down

The Jajpur based Pellet maker has closed sales for the last one week because of maintenance reasons. Sales might be resumed at INR 7,550 (loaded to wagons); was quoted at 7,250/MT previously. The company’s stock position is low presently and it might close its third export deal by month end.