Iron Pellet manufactures based in eastern region of India have increased offers owing to Iron ore supply concerns. On 16 May’14, Indian apex court’s interim order directed suspension of Iron ore mining operations in Odisha.
These suspended mines, which were running under 2nd deemed renewal, had produced 19.1 MnT Iron ore in FY14. In addition, Iron ore miners based in Odisha and Jharkhand are charging high for Iron ore and more than a couple of them have received enough bookings.
However, Pellet manufactures state that they are not offering big quantities and instead, preferring a wait-and-watch stance over anticipation of further upsurge in prices.
On the other hand, Sponge iron and steel manufactures in eastern region believe that Iron ore and Pellet prices might have limited scope of any up rise from these levels, as soon as import becomes viable. Weakening of global Iron ore prices and strong INR will support import.
Company wise Pellet Prices:
- *Barbil: Arya Iron & Steel sold at INR 8,500/MT; now offers are on hold expecting further price hike JSPL sold at INR 7,700/MT; prices increased to INR 8,000-8,200/MT, offers on hold
- Jharsuguda: Bhushan Power & Steel opens at INR 8,350/MT; another Jharsuguda based manufacturer offers are at INR 8,200/MT
- Jajpur: BRPL sold at INR 7,800/MT; now at INR 8,000/MT
- Ardent Steel (Keonjhar) and Essar Steel (Paradip) hold back offers
- Raipur: Bajrang Power & Ispat sold at INR 8,350/MT to a Pig iron producer located in West Bengal; now at INR 9,000/MT
- Bellary: Fe 61 Pellet moves up to INR 7,700/MT & Fe 60 at INR 7,300-7,350/MT
Basic prices (Fe 63/64); *loaded to wagons at Barbil
Leave a Reply