Pellet prices remain stable in eastern India; marginal reduction noticed in central and southern India.
Eastern India: Pellet offers remained stable this week over subdued demand. Buying from sponge manufacturers remained low. Pellet prices at Barbil for Fe 63% are in the range of INR 4,100-4,300/MT (loaded to wagons). Arya Iron & Steel is offering pellets at INR 4,100/MT* and Jindal Steel & Power is offering at INR 4,300/MT*. Keonjhar based pellet manufacturers heard to have sold few parcels at INR 4,000-4,100/MT (Ex- Plant).
Sharp decline in prices of semi finished goods might exert further pressure on pellet manufacturers because of which they might reduce the prices. However, sustaining at reduced price remains a question for pellet makers as they are currently operating at low margins. This might further lead to a shut-down of pellet plants which will in turn compel the merchant miners to slash prices.
Central India: Raipur based pellet manufacturers have marginally reduced their offers. Fe 63% pellets are being offered at INR 5,700/MT (basic) which were at INR 5,800/MT since last couple of weeks. However, buyers remained silent over sharp decline in prices of semi finished goods.
“Last week witnessed sharp decline in prices of semi finished goods. Pellet sponge prices in Central India fell by upto INR 250/MT W-o-W. If the situation persists, pellet prices might reduce further shortly.”- shared a Raipur based pellet maker.
Southern India: Pellet prices have reduced slightly. In Bellary, offers for Fe 62.5% pellets are at INR 5,200/MT (basic) and are around INR 5,100/MT for Fe 62%. Prices have fallen over increased availability of pellets & weak buying from sponge iron manufacturers.
In Hospet, pellet offers for Fe 60.5% are heard to be around 4,775/MT (basic).
Trade-wise-
- Essar Steel exported 20,000 MT pellets to Abu Dhabi via Vizag Port
- Jindal Steel & Power loaded 11 rakes of pellets last week, out of which 3 rakes were supplied to Chhattisgarh based plants
- Arya Iron & Steel and Ardent Steels supplied 5 pellet rakes each last week to plants based in eastern India
Indian Pellet Prices
|
City |
Grade | Prices | W-o-W | M-o-M |
|
(Fe %) |
||||
| Barbil* | 63 | 4,100-4,300 | 0 | -150 |
| Keonjhar | 63 | 4,000-4,100 | 0 | -250 |
| Jamshedpur | 63 | 4,500 | 0 | -200 |
| Raipur | 64 | 5,700 | -100 | 0 |
| Durgapur | 63 | 4,700-5,000 | 0 | 0 |
| Bellary | 62 | 5,100 | -100 | -100 |
Basic prices in INR/MT
*as per loaded into wagons
Source: SteelMint
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