Indian Iron pellet prices have come down by INR 200-300/MT (W-o-W) and INR 700-1,650/MT (M-o-M) owing to falling Sponge iron and Iron ore prices in the domestic market.
Odisha: Barbil based merchant Pellet manufacturer, Arya Iron & Steel, with an installed capacity of 1.2 MnT, is offering Fe 63% Pellets at INR 5,200/MT (as per loaded to wagons). Whereas, Jindal Steel is offering the same grade at INR 5,400-5,500/MT (USD 87-89/MT).
Few trades are reported at INR 5,200/MT (USD 84/MT) and participants expect prices may correct further by INR 200-300/MT in coming weeks. Jharsugda based manufacturer is offering Fe 63% Pellets at INR 5,800- 5,900/MT (USD 93-95/MT) ex-plant, but buying interest is seen at INR 5,700/MT (USD 92/MT) levels.
Another big merchant manufacturer based in Jajpur (Odisha) is offering Fe 63% Pellets at INR 5,200/MT (USD 84/MT) though buying interest continues to remain low.
Chhattisgarh: Chhattisgarh is one of the largest Pellet producing state in the country having an installed capacity of 5.8 MnT and another 2 MnT is in pipeline. Current offers for Fe 63% Pellets are assessed at INR 6,300-6,500/MT (USD 101-104/MT) ex-plant. Buyers prefer to wait as they anticipate prices may come down further looking at declining Iron ore prices in Odisha.
Karnataka: Pellet prices in Hospet for Fe 60% have fallen by INR 100/MT (W-o-W) to INR 6,850/MT (USD 110/MT).
Indian Pellet Prices (Monthly Average)
| City | Grade | Feb’15 | Jan’15 | Dec’14 |
| (Fe %) | ||||
| Barbil* | 64 | 5,500 | 6,210 | 7,370 |
| Jharsuguda | 63 | 6,000 | 6,620 | 7,430 |
| Jamshedpur | 64 | 5,900 | 6,500 | 7,530 |
| Jajpur | 63 | 5,350 | 6,000 | 7,800 |
| Durgapur | 63 | 5,900 | 6,790 | 8,010 |
| Raipur | 64 | 6,630 | 7,170 | 7,780 |
| Bellary | 60 | 7,000 | 7,320 | 7,360 |
Prices are last 3 month average (Dec’14-Feb’15)
Basic prices in INR/MT
*as per loaded into Wagons
Source: SteelMint Research
Odisha Government mounts pressure to increase Iron Ore Dispatches; Prices may fall further
Sharp fall in mining revenue due to closure of some key mines in the state, the Odisha government has asked operational mines to increase dispatches, which in turn will fetch them royalty.
Odisha Miners cut Iron Ore Prices by upto 38% in last 4 Months; may fall further
Odisha based miners have already cut Iron ore prices to an extent of 38% in last 4 months in order to increase dispatches. However, sources mentioned that buying is still subdued on the backdrop of falling steel prices in the domestic and global market. If buying remains weak, further price cut can be expected in coming weeks.
Rungta Mines (Odisha) Iron Ore Prices
|
Size (mm) |
Grade (Fe%) | Prices | |||
| Feb’15 | Jan’15 | Dec’14 |
Nov’14 |
||
| 5-18 | 65 | 5,850 | 6,350 | 7,300 | 7,700 |
| 5-18 | 63 | 5,550 | 6,050 | 7,000 | 7,400 |
| 10-30 | 65 | 5,200 | 5,700 | 6,650 | 7,050 |
| 10-30 | 63 | 4,800 | 5,300 | 6,250 | 6,650 |
| Blue Dust/Fines | 63 | 2,400 | 2,700 | 3,600 | 3,900 |
Prices in INR/MT
Prices are on FoR siding basis; including royalty
Source: SteelMint Research
Exchange Rate: USD 1 = INR 62.15
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