Indian domestic Iron Pellet prices have weakened and a further correction is anticipated because of slow off take from Sponge iron producers.
One of the Barbil based Pellet manufacturer is offering the material at INR 7,100/MT (Ex works) currently, to domestic takers.
Pellet producers remarked, “Demand is weak and prices have come down as buyers are not accepting higher prices. Also, export market is dull presently and 5% duty on exports has resulted in falling margins, which has pulled down domestic offers too.”
Bushan Power & Steel (BPSL) based in Jharsuguda is selling Pellets at INR 7,350/MT (basic) in domestic market. It might close its first export deal in the current month and is heard to have received offers at around USD 155/MT FoB from Iranian & Chinese buyers.
A trader said, “Indian Pellet export market is silent as China is closed for New Year Holidays and demand is not good. Even after re-opening, market might not be in a big mood in the coming days.”
Essar Steel (Paradip) is expected to finalize a deal for 50,000 MT in this week, for shipment in February.
Jindal Saw (Bhilwara) in Rajasthan is continuing to offer Pellets at INR 8,800-8,900/MT (delivered) to Sponge iron units located in the northwest region of India and said that demand is good presently.
Shipment
On 02 Feb, 2014, Brahmani River Pellets Limited (Jajpur) shipped 54,000 MT Pellets from Paradip Port; vessel name Baltic K.
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