Recently, two major merchant miners in Odisha cut lump prices which could lead pellet makers in eastern India to cut production.
Indian pellet prices across India have fallen by upto INR 2000/MT in last six months over subdued demand and falling prices of sponge iron. This has also led to piling up of stock at their inventories.
Pellet manufacturers in eastern India may cut production due to disparity between lumps and pellet prices. Odisha miners have recently cut lumps prices by INR 200-350/MT but kept fines prices unchanged. Pellet manufacturers mention that they are operating at very thin margins and have limited scope of correction.
Price Trend of Iron Pellet & Lump in last 6 months
|
Month |
Pellet Prices | Odisha Iron Ore 5- 18 mm (Fe 63%) | ||
| Barbil* | Raipur |
Bellary |
||
| Jan’15 | 6,300 | 7,200 | 7,300 | 5,590 |
| Feb’15 | 5,300 | 6,600 | 7,000 | 4,850 |
| Mar’15 | 5,800 | 6,230 | 6,750 | 4,850 |
| Apr’15 | 5,370 | 6,080 | 6,380 | 4,790 |
| May’15 | 4,740 | 5,970 | 5,760 | 4,350 |
| Jun’15 | 4,300 | 5,800 | 5,200 | 4,270 |
Monthly Average prices in INR/MT
* Loaded to Wagons
Pellets 63%
Source: SteelMint
Eastern India
- With prices of fines remaining unchanged and subdued demand of pellet sponge, pellet manufacturers in eastern India have maintained their offers at last week’s levels
- Pellet prices for Fe 63% in Barbil are in the range of INR 4,300/MT
Central India
- Pellet market here has been hit by pellet supplies from Odisha. Odisha based pellet makers are supplying pellets in central India at around INR 5,500-5,600/MT (delivered to plants)
- On the other hand, Raipur based pellet manufacturers are offering Fe 63% pellets at INR 5,800/MT (basic)
“Buying remained poor last week and pellets from Odisha grabbed enough buyers in central India and Maharashtra. Buyers are looking for offers at INR 5,500/MT. Looking at this, there are chances that Raipur based pellet makers might cut offers this week”, shared a Raipur based pellet maker.
Southern India
Pellet sponge prices in Bellary remained almost unvarying last week. On similar lines, pellet prices also continue to remain at similar levels.
Trade Wise
- Brahmani River Pellets supplied 2 pellet rakes to Jindal Steel & Power and 1 rake to Bhushan Steels
- 67% Fe pellets premium assessed at USD 40/MT
- Jindal Steel imported 50,000 MT high grade iron pellets from Middle East last week
- Indian pellet exports were recorded from Paradip Port at USD 72-73/MT FOB- Custom Data
- Essar’s high grade pellets from Vizag were recorded at USD 109/MT FOB to Iran, according to customs data
- Jindal Saw’s pellet offers at INR 5,600-5,700/MT (delivered Kandla Port)
Indian Pellet Prices
|
City |
Grade | Prices | W-o-W | M-o-M |
|
(Fe %) |
||||
| Barbil* | 63 | 4,300 | 0 | 0 |
| Jamshedpur | 63 | 4,700 | 0 | -150 |
| Raipur | 64 | 5,600-5,800 | 0 | -200 |
| Durgapur | 63 | 4,700-5,000 | 0 | -150 |
| Bellary | 62 | 5,200 | 0 | -200 |
| Kandla** | 63 | 5,600-5,700 | 0 | 0 |
Basic prices in INR/MT
*as per loaded into wagons
**delivered
Source: SteelMint
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