Iron Pellet makers based in Bellary, Karnataka have rated present markets as 'dull' and said that they find no reasons to raise prices for the current week.
Offers for both low as well as high grade material remains unchanged. One of the Pellet manufacturers has lowered prices by Rs 50/MT and raised discounts structure by the same, for buyers interested in bulk purchases.
Prevailing Pellet prices:
Rs 6,600/MT (Fe% 60)
Rs 7,100-7,350/MT (Fe% 62)
Discount structure:
Maximum discount of Rs 75/MT on purchases of 10,000 MT of material
“Markets have not met with any change in terms of demand for Pellet as compared to the last week.
Moreover, induction furnaces in states such as Andhra Pradesh and Tamil Nadu, on account of power problems (both less supply and high tariff), are making low purchases”, said Pellet producers in Karnataka.
In the previous week, buying improved slightly as Sponge iron units gave preference to Pellet instead of expensive and inferior quality lumps available through e-auctions.
Also, induction furnaces starting to use more Sponge iron due to 2.5% customs duty imposed on Scrap imports, which has resulted in opening up of few of the Sponge iron units.
Manufacturers said that, “This week, in terms of both prices and demand, looks to end up as 'stable'.
Things might change, after a fortnight, due to expectations of monsoons, when consumers are anticipated to carry maximum quantity and start stocking raw material”.
There would more issues during monsoon – transportation, availability of required quantity, bad quality material because of high moisture content.
Leave a Reply