Manufacturers of Iron Pellet located at Raipur (Chhattisgarh) have pulled down offers looking at weak demand and also as Sponge iron prices continue to stand at low levels.
Offers have been lowered to Rs 7,500/MT (basic), down by Rs 300/MT.
Bajrang Power and Ispat has started offering Pellets in domestic market and was utilizing the material only for captive consumption initially in the previous month. It has been heard that about 5,000 tons have been sold out at Rs 7,400/MT.
According to Pellet makers, “We don't see any big improvement in market in the months ahead and prices might drop further.
Most importantly, Sponge iron prices are not picking up and have fallen by 18% Y-o-Y as on 03 July to 18,600/MT.
Supply of Pellets at Raipur is to increase in a month's time due to capacity addition and Iron ore miners based at Odisha have recently cut lumps prices up to Rs 500/MT, putting pressure on current Pellet offers”.
Manufacturers of Pellet at various other locations continue to hold offers at last week levels.
Current Fe 62 Pellet prices:
Barbil:6,400-6,700
Keonjhar:6,100-6,500
Jharsuguda:6,500
Tatanagar:6,800
Bellary:6,950-7,300
6,200 (Fe 60)
Basic prices
Pellet producers at Barbil (Odisha) and Bellary (Karnataka) said, “Nothing has changed and demand remains as it was.
We are trying to sell out the material at slightly high prices by Rs 100/MT more but have not been able to receive any orders yet.
Infact, buyers are still looking to lift the raw material at prices lower by Rs 200-300/MT”.
For more details, contact
Seema Goenka
(seema@steelmint.com)
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