Producers of Iron Ore Pellet in India might consider a further reduction in current offers after NMDC declares iron ore prices of December.
Pellet prices have chances of coming down by Rs 200/MT as NMDC might cut iron ore lumps prices by 3-4% in the current week and also as buyers of Pellet are still looking for purchases at lower prices.
In South India, Pellet offers are firm as sponge iron market has stabilized, there is no movement seen in the final products market and as semi finished steel producers look to lower output on account of huge inventory.
Pellet sales in Nov '12: A major producer in Barbil 2.2 lac mt, Adhunik Metaliks Ltd (Tatanagar) 95,000 t, Xindia Steels Ltd (Bellary) 61,000 t, BMM Ispat Ltd (Bellary) 28,000 t and a major Pellet maker in (Raipur) Around 20,000 t.
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