Indian Pellet manufacturers who had been holding offers in anticipation of pending Supreme Court’s verdict on Iron ore mining ban in Odisha, have resumed sales at higher prices.
Trade sources say, “Although Pellet manufacturers have raised offers albeit feeble demand, not many Sponge iron producers are keen to procure the material at prevailing price levels”.
“There is no ambiguity on Supreme Court’s pending judgement. We have adequate inventory of Iron Ore, that will last for about a month .We do not want to store more because Sponge prices have taken a downward trend and would prefer to wait-and-see,” said a Sponge Iron manufacturer based in Eastern India.
He also mentioned, “Until now, there has been no constraint in supply of Iron ore from Odisha”.
On the other hand, Pellet manufacturers remark, “Supreme court order may set an adverse impact on Iron ore mining in Odisha, but is uncertain when will the order come out”.
Currently, manufacturers are offering Pellets at:
|
Place |
Grade (Fe%) |
Prices in INR/MT |
|
*Barbil |
63 |
6,900-7,000 |
|
Jharsuguda |
63 |
7,100-7,250 |
|
Raipur |
63/64 |
7,900-8,000 |
|
Tatanagar |
63 |
7,400 |
|
Mangalore |
63 |
7,775 |
|
Bellary |
62.5 |
8,150 |
|
62 |
8,000 |
|
|
61 |
7,300 |
|
|
60 |
7,000-7,100 |
Prices are Ex-Works Basis
*Barbil Prices are Loaded to Wagons
Source: SteelMint
Export Market
Pellet exports have almost dried out after 5% export duty imposition in Jan 2014. A strong drop in Chinese Iron ore prices by USD 13-14/MT in previous one month and appreciated Rupee at 59 against USD (likely to touch 58 this month) has made things most awful.
Indian exporters say, “Pellet consumers are all set to procure the material at nearly USD 117-120/MT FoB east coast of India, which is not viable for us.”
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