Indian Pellet Market Remains under Pressure, Prices may Fall Further

1. Indian pellet prices have declined by upto 28% since Apr’15
2. Steady fall in pellet sponge prices have resulted in reduced demand for pellets
3. It seems that prices might fall further if sponge iron prices continue to remain weak

Pellet prices in eastern India have not witnessed any major change and continue to remain at last week levels. Despite pellet sponge prices have moved up today in Durgapur by INR 300-400/MT, it has not impacted the pellet prices and they continue to remain in the range of INR 4,200-4,500/MT (basic). While, in Jharsuguda prices have fallen by INR 100/MT W-o-W and are at INR 4,200/MT (basic).

Raipur pellet prices have reduced marginally and are in the range of INR 4,700-4,800/MT (basic). Market sources shared that price fall of P-DRI in Raipur of around INR 250/MT W-o-W has led to decrease in pellet prices.

Pellet prices in southern and western India continue to remain stable. Kandla pellet offers are likely to come down to INR 5,200/MT (delivered) by end of this week which are currently at INR 5,350/MT (delivered).

Indian Pellet Prices as on 12 Oct’15

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

Since Apr’15, pellet prices have shown declination and major reduction has been seen in eastern and southern regions.