Arya Iron & Steel, one of the largest merchant Pellet manufacturers in the eastern region with an annual capacity of 1.2 MnT, has cut Pellet prices further by INR 200/MT (USD 3/MT). Current offers are assessed at INR 4,800/MT, as per loaded to wagons at Barbil railway siding (Odisha).
The Pellet maker had last cut prices by INR 200/MT on 01 May, 2015. The Pellet maker has reduced prices on the backdrop of weak demand and declining Sponge iron prices in the Indian market.
Limited scope of Price correction in Pellets
Indian Pellet prices are expected to sustain at these levels looking at cost of production. It will not be viable for Pellet manufacturers considering Iron ore fines prices at INR 1,800-1,900/MT (Ex-Mines Odisha, Including royalty) and a conversion cost of INR 2,000-2,200/MT.
“We have booked decent cargoes at these prices and do not see prices to go down from here, untill and unless Iron ore fines prices come down”- said a Pellet manufacturer based in Odisha.
Trade-wise:
1.Jharsuguda (Odisha) based manufacturer offered Fe 63% Pellet at INR 5,400-5,500/MT
2.Keonjhar (Odisha) based manufacturer are offering Fe 63% Pellets at INR 4,600-4,700/MT
3.Imported Lumps from South Africa assessed at USD 72/MT CIF India for June deliveries
4.Indian govt reduced export duty on low grade Iron ore by 20%; exports still not viable from Goa
5.Pellet Sponge (P-DRI) prices at INR 15,700-800/MT (Ex- Durgapur, 78 FeM) and INR 15,600-700/MT (Ex- Raipur, 80 FeM), INR 14,900-15,000/MT (Ex- Bellary, 78 FeM)
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