Bhushan Power & Steel, which has recently commissioned a 4 MnT pa Iron Pellet plant in Odisha is offering its material for domestic sales.

Current Pellet (Fe 63) offers are standing in the range of INR 7,400-7,500/MT (ex works Jharsuguda). Jan 2014 onward, the company started offering Pellets to buyers based in states such as Odisha, West Bengal and Maharashtra.

In mid-November, Bhushan Power started commercial operations of its Pellet plant and is sourcing Iron ore fines from private miners located in Odisha. About 70% of total production is used for captive purpose; rest 30% is used for domestic sales.

[su_quote]According to sources, “Demand in Pellets is good and the manufacturer is utilizing 100% of the installed capacity. Presently about 3,000 tonnes of the material is being sold by Bhushan Power per day.”[/su_quote]

Indian Pellet Prices remain Constant

Pellet (Fe 63) offers in Odisha sustain at previous weeks level at INR 7,600/MT (ex works Barbil) and INR 7,400-7,500/MT (ex works Keonjhar), owing to no uptick in Sponge iron offers and stability in demand.

Pellet sales resume at Jajpur and offers are quoted at INR 7,600/MT (loaded). Exporters are uninterested to close any new deal as margins are quite low in comparison to realization from domestic sales.

Buying volumes came down in Central part of India as buyers are unwilling to place bookings at above INR 8,000/MT (basic). Current prices are standing in the range of INR 8,000-8,200/MT (basic).

Bellary based manufacturers hold offers in the range of INR 7,750-8,000/MT (basic) because of high fines prices in Karnataka e-auction. Sales price for Fe 65 fines in 09 Jan, 2013 e-auction stood at INR 3,050/MT (basic).

Sponge iron prices correct by INR 500/MT to INR 19,500/MT (basic) in last one week. Lower grade Pellet (Fe 60-61) is being offered at INR 7,100-7,400/MT (basic).