Iron Pellet market has not been much favorable (this week also) for manufacturers based in the state of Odisha.
As per expectations, Pellet offers from most of the manufacturers have remained constant, except for one, which is offering the material cheaper by Rs 200/MT.
At the moment, there are no such factors, in support of Pellet sales. Both Sponge iron units and integrated steel plants are uninterested to procure the raw material in big quantities.
Iron Pellet current prices (Rs/MT):
*Barbil: 7,400
Keonjhar: 7,200-7,400 (Drop of Rs 200/MT)
Ex works prices; *loaded to wagons at Barbil
One of the major Odisha based Pellet manufacturers, on annual maintenance reasons, had taken a shut down in the beginning of May and is likely to resume operations around the first week of June.
Looking at the downward trend in Pellet prices in the last couple of weeks, it decided to offer the leftover stock of about 15,000-16,000 tons at Rs 7,400/MT, out of 95,000 tons of total quantity produced in April.
It was earlier, in the last week of April, offering the material at Rs 7,850/MT.
Though, there is limited room for correction in Sponge iron prices after imposition of 2.5% customs duty on Scrap, Sponge iron offers continue to stand at low levels.
Presently, sponge iron units are utilizing minimum capacities to maintain operations.
Others:
Tatanagar: 7,600 (Down by Rs 300/MT)
Raipur: 9,000
Ex works prices
At Tatanagar, Pellet offers slipped by Rs 300/MT on similar reasons, as stated above.
Whereas, Pellet makers at Raipur maintain prices as buying from sponge iron units improved last week.
According to manufacturers, Pellet prices at Odisha as well as Tatanagar might weaken further in the days ahead, provided demand remains like this.
They mentioned that they are not stocking much as of now, to meet the pre-monsoon demand.
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