Demand for Iron Pellet continues to be slow and manufacturers have been unable to raise offers for the present week also.
Producers of high grade Pellet based in Bellary (Karnataka) are selling the raw material at same levels as last week.
Whereas, offers slipped by Rs 200/MT for low grade material.
One of the producer has increased discount structure due to weak buying activities.
Current Pellet offers:
Fe 62 Rs 7,100-7,400/MT
Fe 60 Rs 6,500/MT
Discount of Rs 150/MT for 10,000 tons of material.
“We might have to lower prices further as quantity purchases have already come down.
No steps have yet been taken to look into construction activities and there is not much of movement in finished steel market, which would account for rise in demand for raw material.
Sponge iron units are not in a position to absorb losses and uninterested to procure material at the moment.
Monsoons is going to make things worse as demand will weaken further”, said manufacturers.
As seen in the last e-auction, there was only a single buyer for NMDC's Kumarswamy lumps on May 21.
Steelmakers in Karnataka, have in the last few e-auctions, chosen not to buy costly lumps which would highly impact their margins.
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