Pellet Makers in Eastern India Ready to Reduce Prices to Book Sales

Pellet prices in eastern and central India have witnessed reduction; those in western and southern India continue to remain stable.

Pellet prices in eastern India fall by upto INR 300/MT W-o-W

1. Pellet prices in eastern India have further fallen by INR 100-300/MT W-o-W. And in comparison to last month, prices are down by around INR 500/MT
2. No firm offers were heard in Barbil region. Jindal Steel & Power (JSPL) has sold significant quantity at INR 4,700/MT (loaded to wagons) and remains overbooked. However, some pellet offers in Barbil were heard to be around INR 3,900/MT (loaded to wagons and INR 1,100/MT extra for freight and other expenses)
3. Keonjhar pellet prices are at INR 3,900/MT (loaded to wagons). Pellet prices in Durgapur for Fe 63% have fallen by INR 100/MT, W-o-W and are in the range of INR 4,300-4,500/MT  (basic) on the backdrop of sharp decline in P-DRI prices (INR 700/MT W-o-W). Pellet makers are seen to offer pellets at INR 4,300-4,500/MT FoR plant (if quantity bought exceeds 3,000 MT). Sources mentioned that few sponge iron manufacturers might shift to pellets at current offers
4. Pellet prices at Jamshedpur have fallen by INR 300/MT W-o-W and are at INR 4,700/MT for Fe 63% pellets

Pellet prices in central India notice marginal fall

Pellet prices in Raipur have fallen by INR 100/MT W-o-W and are at INR 5,000/MT (basic) for Fe 63% pellets. Market sources shared that prices might fall further by INR 100/MT.

Stability prevails in southern and western India pellet prices

Stagnant demand keeps pellet prices in Bellary unmoved at INR 4,800/MT (basic) for Fe 62% pellets. Hospet pellet offers are in the range of INR 4,750-4,800/MT (basic) for pellets of same grade. Similarly, in western India, pellet (Fe 63%) prices remain unchanged at INR 5,350/MT, delivered Kandla.

Indian Pellet Prices as on 28 Sept’15

Basic prices in INR/MT
*loaded to wagons
**delivered
NA: Not Available
Source: SteelMint