Indian Steelmakers book Imported Iron Pellets at around USD 147/MT CFR West Coast

As expected, Indian steelmakers have finally gone for Iron pellets imports after the Supreme Court suspended the mining operations at 26 key mines in Odisha over their second deemed renewal status.

According to trade sources, steel companies based on West Coast of India have ordered for few Iron pellet parcels from CIS countries at USD 146-148 CFR West Coast having Fe content 65%, tumbler index over 93% and gang content less than 6 %. Iron ore and Pellet imports attract an import duty of 2.5%.

Sources tell SteelMint that landed cost of Pellets on West Coast would be around INR 9,000-9,100/MT and will be delivered sometime in last week of June or first week of July.

Import Cost

Considering 65% Iron Pellets from CIS Countries

Indian Domestic Pellet Prices raise to INR 3,000/MT (USD 50/MT) in last 1-month 

Indian domestic Pellet prices are soaring high on limited supply of Iron ore since the Supreme Court ordered the suspension of mines. Pellet prices in Indian domestic market have moved up by INR 3,000/MT in last 1-month, forcing steelmakers to go for imports.

Current prices in Indian domestic market are at around INR 9,000/MT in Odisha, INR 9,500/MT in Chhattisgarh, INR 9,500/MT in West Bengal and INR 9,100/MT in Gujarat (all prices are basic; excise & taxes extra).

NMDC likely to raise Prices for June 

With rising Pellet prices and restricted supply of Iron ore gives NMDC a bright chance to raise ore prices. Trade experts anticipate prices may go up to INR 400-500/MT. Sources also mentioned that NMDC has received overwhelming response from Chhattisgarh Sponge iron manufacturers, who have reserved quantity of around 7 MnT of Iron ore.

Sources also say Monnet & Bhushan have booked significant quantity last week. Essar’s pipe line is under maintenance and is out of the market for time being, said sources.