Pellet prices in Odisha fell around INR 2000/MT in last six months.
Low demand and falling sponge prices have pulled down pellet prices in Barbil, Odisha, which is one of the largest pellet making region in India.
Current offers for 63% Fe are assessed at INR 4,200/MT by Arya Iron and Steel, and INR 4,300/MT by Jindal Steel & Power Ltd (Basic prices, loaded on to wagons), down by INR 100/MT as compared to last week.
Pellet prices in Odisha have fallen upto INR 2,000/MT in last six months owing to increased supply and falling sponge iron prices.
Falling prices have put tremendous pressure on margins of the pellet makers. Some pellet makers may opt to shut down their operations in coming months.
Pellet prices in other parts of the country remain unchanged; however, increasing supply and falling global prices will continue to put pressure on prices.
Falling lump premium in global market
Lump premium have fallen from 0.18/dmtu to 0.1/dmtu in last couple of months, which gives a room for imports. In case global prices continue to fall further, Indian sponge makers will switch to imported lumps from South Africa.
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