Falling sponge iron (DRI) prices and production cut by steel manufacturers have weighed on Iron Pellets and iron ore demand. Despite the restricted supply of iron ore, manufacturers are not willing to pay high for Pellets on depressed market.
According to sources, the large Pellet manufacturers might cut offers up to Rs 400/MT this week.
“There is absolutely no buying of Pellets at current levels of Rs 8,600/MT (F.O.R Barbil siding, Odisha for Fe 63, $156/MT) as buyers are looking to purchase at offers quoted in the range of Rs 8,000-8,200/MT ($147/MT).
Hence, we might see Pellet prices coming down this week,” shared a market participant.
Leave a Reply