Pellet prices across major markets of India have fallen by INR 100-300/MT W-o-W.
In Durgapur, prices continue to remain same, however market sources shared that pellet makers are giving quantity discounts to book sales. P-DRI prices have witnessed sharp decline of INR 300/MT W-o-W with interest of some sponge iron manufacturers shifted towards calibrated lump ore.
No firm offers for pellet were heard in the Barbil region. Trade sources confirmed that Jindal Steel & Power (JSPL) might open fresh offers around 15th Oct’15. Pellet prices in Keonjhar have also fallen by INR 300/MT W-o-W and are at INR 3,600/MT (loaded to wagons).
Pellet prices in Central as well as Southern India have also shown a fall owing to weak demand.
Indian Pellet Prices as on 06 Oct’15
|
City |
Grade | Prices | W-o-W | M-o-M |
|
(Fe %) |
||||
| Keonjhar* | 63 | 3,600 | -300 | -900 |
| Jharsuguda | 63 | 4,300 | NA | -500 |
| Durgapur | 63 | 4,200-4,500 | -50 | -850 |
| Raipur | 63 | 4,800-4,900 | -150 | -450 |
| Bellary | 62 | 4,600-4,700 | -100 | -100 |
| Hospet | 63 | 4,600 | -100 | NA |
| Kandla** | 63 | 5,350 | 0 | 0 |
Basic prices in INR/MT
*loaded to wagons
**delivered
NA: Not Available
Source: SteelMint
Week 41 Prospects:
- Eastern India based pellet makers would be under immense pressure as some Odisha based miners have raised fines prices by INR 200/MT. Also, railway freight charges have gone up by INR 150/MT on account of additional busy season charges being levied (in the time months of Apr-Jun and Oct-Mar) on transportation of key commodities including iron ore
- NMDC has reduced iron ore fines prices by INR 200/MT and limited pellet buying from Chhattisgarh based sponge manufacturers might compel pellet makers in central India to reduce offers
- Pellet makers in Bellary might reduce prices amid falling pellet sponge prices
- Kandla pellet offers might also witness reduction as its close substitute imported lump offers to India have also declined and likely to fall further
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