Iron Pellet manufacturers based in the state of Odisha have lowered offers further due to weak Sponge iron prices and poor off take of finished steel products.
One of the Pellet makers is not offering material at the moment due to no availability of fresh stock and is expected to resume sales in the first week of June (has taken maintenance shut down).
According to Pellet producers in Odisha, “We are offering Pellet at Rs 300/MT less in comparison to last week.
Most importantly, there is no demand in finished steel products, Sponge iron prices are standing at quite low levels and no new plans of investments in infrastructure have been announced.
Sponge iron market has not improved as units are still in a loss.
Pellet might be offered at a further cheaper price in the current week itself.
Things are not looking good. Buying is only need based looking at continuously falling markets.
Buyers are ignoring to stock the raw material, unlike, the pre-monsoon period when demand is good”.
Prevailing Iron Pellet Prices (in Rs Ex works):
Barbil: 7,100-7,200
Keonjhar: 6,900-7,000
Updated: Jharsuguda: 7,500 (-50) – As the manufacturer received orders at the current price level, it decided not to lower it further.
Jamshedpur: Rs 7,500/MT (-100)
The Jamshedpur based Pellet producer said, “there is limited room for any further correction in prices.
They are already at a lower level now and also as there would be scarcity of Iron ore fines in the month ahead.
Raipur: Rs 8,500/MT
“We have decided to maintain prices for the present week at current levels.
Booking orders being received now are decent which picked up after offers were reduced last week”, remarked Pellet manufacturer located at Raipur.
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