Indian Domestic Pellet Market Update – 01 May’20

Domestic pellet trades in India remained slow this week. However, market sources expect inquiries to pick up from next week with more sponge plants resuming operations.

Raipur pellet offers remain stable-: Raipur based pellet manufacturers have kept the pellet offer unchanged against the beginning of this week. Current pellet offer for Fe 63% grade stands at INR 5,800-5,900/MT ( EXW Raipur, GST extra). As per the market participants reported to SteelMint, one of the major Raipur pellet maker has concluded around 10,000 MT pellets deal in the local market yesterday at similar price levels. But confirmation from the buyer side could not be received till the time of publishing this article.

Raigarh pellet offers were reported at INR 5,400-5,500/MT EXW Raigarh, GST extra.

Few pellet plants in Bellary resume offers -: As per the sources, few southern India (Karnataka) based pellet makers have resumed pellet offers recently at INR 6,100-6,200/MT (ex-Bellary, GST extra). In further conversation with the market participants, they informed that some more pellet maker from Bellary may resume offer from the next week.

Fresh bookings remained on the lower side, however, dispatches of previous bookings are being done.

Barbil pellet offers unchanged-: As per the sources, Barbil (eastern India) based pellet manufacturers continued to quote pellet offers in the domestic market. Current offers for Fe 63% grade stands at around INR 5,100-5,300/MT (loaded to wagon, GST extra). However, no significant deal has been reported.

SteelMint pellet reference prices as on 01 May’20

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