Weak buying from Sponge iron plants has pushed Iron pellet manufacturers in eastern region to lower offers by INR 200/MT today. Despite scarcity of Iron ore, which has hit Pellet production, prices are on downward track.
Odisha based Arya Iron & Steel (Barbil) is offering Pellets at INR 7,800/MT and Ardent Steel (Keonjhar) at INR 7,600/MT (prices are as per loaded into wagons).
While, Jindal Steel & Power (JSPL) is utilizing 100% Pellets for in-house consumption because of raw material shortfall. Other manufacturers have either closed down shops or hold offers.
It is anticipated that some of the running Iron ore mines in Odisha would be granted an extended Environmental Clearance (EC) and production may improve in the quarter ahead.
Manufacturers in Jamshedpur (Jharkhand) are offering Fe 63% Pellets at INR 7,600-7,650/MT (ex-works).
Central & southern parts of the country are not an exception and pull down offers to INR 7,800/MT (ex-works Raipur) and INR 7,150/MT (ex-works Hospet) because of slowdown in purchases.
Low cost imported Iron ore offers to India has also put pressure on domestic raw material prices.
Indian Iron Pellet Prices
|
City |
Grade (Fe%) |
Prices in INR/MT |
| Barbil | 64 | Arya Iron & Steel: 7,800* |
| Paradip | 63 | Essar Steel: 7,700 |
| Jajpur | 64 | Brahmani River Pellets: 7,900 |
| Keonjhar | 63 | Ardent Steel: 7,600* |
| Tatanagar | 63 | Adhunik Metaliks: 7,800-7,900 |
| 63 | Usha Martin: 7,600-7,650 | |
| Jharsuguda | 63 | Shyam Metalics & Energy: 7,500 |
| Raipur | 64 | Godawari Power & Ispat: 8,300 |
| Durgapur | 63 | Shyam Sel: 8,600 |
| 63 | Ankit Metal & Power: 8,200 | |
| 62 | Rashmi Metaliks: 8,000 | |
| Bellary | 60 | Janki Corp: 6,900 |
| Hospet | 62 | Xindia Steels: 7,150 |
| Mangalore | 63 | KIOCL: 7,750 |
|
Essar Steel (Vizag), Jindal Steel & Power & Bajrang Power & Ispat – Sales closed |
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Basic prices
*Prices as per loaded into wagon
Source: SteelMint Research
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