Iron Pellet supply in Odisha is low at present, as manufacturers located in Barbil, Jharsuguda and Keonjhar are not offering their material to domestic buyers because of low inventory and export commitments.
Sellers are unwilling to offer Pellets at lower prices owing to higher realizations from overseas trades and limited quantity available.
Buyers of Pellets have therefore preferred to procure Iron ore lumps, which is available at cheaper rates by around INR 1,000/MT from Odisha based miners.
Pellet manufacturers located in Paradip are offering the material at INR 7,100/MT to Vizag based buyers.
Pellet producers in Raipur, Bellary, Jamshedpur and Tatanagar have maintained prices at previous levels, as demand is decent and Indian Sponge Iron prices remain constant.
One of the Pellet exporter based in Keonjhar and Tatanagar have chosen to ship Pellets from Haldia Port instead of Paradip Port, as the delivery might not be completed on time from the latter.
A couple of shipments which were to happen in August, have been delayed by the Paradip and Tatanagar based exporters and is expected to be completed in the current month.
For another Keonjhar based exporter, the shipment period has been extended by a fortnight i.e. from September to mid-October and transportation of the raw material to Paradip Port started yesterday only. It has quoted INR 7,200/MT for sales in domestic market.
Fe 63 Pellet prices:
Keonjhar: 7,200
Jajpur: 7,250
Paradip: 7,100
Raipur: 8,300-8,500
Jamshedpur: 7,800
Bellary: 7,225-7,500
Fe 60: 6,200
Basic
Appreciation in Indian Rupee against US Dollar, which touched one month high at 61.80 in the opening trade today, against the previous close of 63.38, will force local supply of both Iron ore fines and Pellets, to increase in Odisha.
Pellets prices have some scope for correction, once domestic supply improves. This will happen only after shipment of export order quantities.
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