India: Pellet supply increases as some merchant plants start production

Indian pellet supply increases this week as some merchant plant based in eastern region starts production.

Arya Iron and Steel, merchant pellet plant based in Barbil Odisha, with an annual capacity of 1.2 MnT has resumed operations recently, which was closed since 1^st week of March, mentioned market participants. Offers are assessed at INR 5,700/MT (F.o.R siding , Barbil, Odisha).

Sources also mention that Stemcor owned BRPL (Brahamani River Pellets Ltd), is active in market and offers are assessed at INR 5,200/MT (Ex- Works) for Fe 64/63% Iron Pellets. BRPL is India’s one the largest merchant Pellet manufacturer with an annual capacity of 4 MnT.

Trade sources expect Pellet prices in eastern region may feel some pressure specially after increased supplies. Market is also anticipating Monnet Ispat to commence their 2 MnT Pellet plant in the month of April/May 2015, which will further increase supply to domestic market.

Pellets prices in other part of the country remain unchanged, however trade volumes remain low.

Trade Wise:

1. 63% Pellet prices in Raipur assessed at INR 6,100-6,300/MT
2. 63% Pellet prices in Jharsugda assessed at INR 5,900/MT
3. 63% Pellet prices in Durgapur assessed at INR 6,100-6,500/MT
4. 62% Pellet Prices in Bellary assessed at INR 6,600/MT
5. 61% Pellet prices in Bellary assessed at INR 6,200/MT