Indian pellet manufacturers have kept their offers unchanged this week amid stable iron ore prices in domestic market. Pellet manufacturers feel prices have bottomed out and have limited scope of correction. Most of the plants are operating at mere 40-50% capacity.
Eastern India:
- Jindal Steel & Power is offering pellets at INR 4,270/MT (loaded to wagons). Arya Iron & Steel has kept its sales closed as of now
- Keonjhar pellet prices are at around INR 3,900/MT (basic) and in Jajpur they are at around INR 4,000/MT (loaded to wagons). Shyam Metalics & Energy is offering Fe 63% pellets at INR 4,800/MT (ex-Jharguguda)
- Pellet prices in Durgapur for Fe 63% remain stable and are in the range of INR 4,600-5,000/MT (basic). Though, pellet sponge prices in Durgapur have strengthened by INR 450/MT W-o-W but pellet buying has not improved significantly. Thus, pellet prices are still similar as they were last week
Central India:
- Pellet prices in central India for Fe 63% are at around INR 5,100/MT (basic). Pellet manufacturers are of view that prices might gain stability at current levels
Southern India:
- Pellet prices in Southern India are also at levels similar to last week. Fe 63% pellets are in the range of INR 4,950-5,000/MT (basic). Pellet manufacturers shared that they are receiving decent bookings at these prices; hence, have kept the prices unchanged
Western India:
- Jindal Saw’s pellet plant which was shutdown for maintenance purpose has resumed operations. They will start offering pellets probably by mid of this week. Last deal was concluded at INR 5,100/MT delivered Kandla
Trade-wise:
- Jindal Steel & Power is to import 50,600 MT pellets from UAE. The vessel is expected to arrive at Dhamra Port on 13 Aug’15
- Jayaswal Neco had concluded a deal last week at INR 5,150/MT (basic & VAT exemption). Currently, the company is offering Fe 63% pellets at INR 5,200/MT (basic & VAT exemption)
- As per data recorded by tracking railway movement, a total of 16 pellet rakes were loaded last week. Arya Iron & Steel loaded 7 rakes and Jindal Steel & power loaded 6 rakes
- 2 pellet rakes were procured by Chhattisgarh based plant, 1 each from Arya Iron & Steel and Jindal Steel & Power
Indian Pellet Prices
| City | Grade | Prices | W-o-W | M-o-M |
| (Fe %) | ||||
| Barbil* | 63 | 4,270 | +100 | 0 |
| Keonjhar | 63 | 3,900 | 0 | -100 |
| Jajpur* | 63 | 4,000 | 0 | NA |
| Jamshedpur | 63 | 4,200-4,300 | 0 | -250 |
| Jharsuguda | 63 | 4,800 | NA | NA |
| Durgapur | 63 | 4,600-5,000 | 0 | -50 |
| Raipur | 63 | 5,100 | -50 | -400 |
| Bellary | 62 | 4,950 | +50 | -150 |
Basic prices in INR/MT
NA: Not Available
*loaded to wagons
Source: SteelMint Research
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